Title: Home Front Energy Independence Act
Policy area: Taxation

Summary:
Home Front Energy Independence Act
This bill prohibits the importation of petroleum and petroleum products from Russia until Russia recognizes the sovereignty and territorial integrity of Ukraine.
The bill allows a new tax credit for the sale or blending of ethanol fuels. It also extends through 2025 the income tax credit for biodiesel and renewable diesel used as fuel.
The bill modifies requirements relating to the waiver of ethanol reid vapor pressure limitations and E15 labeling.
The bill requires the Department of Agriculture to award grants to certain governmental entities for expanding the biofuel infrastructure and agriculture product market.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3787 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 3787

 To prohibit the importation of petroleum and petroleum products from 
 the Russian Federation, to amend the Internal Revenue Code of 1986 to 
  establish an income tax credit for the sale or blending of certain 
fuels containing ethanol and to extend tax incentives for biodiesel and 
   renewable diesel, to amend the Clean Air Act with respect to the 
ethanol waiver for Reid vapor pressure limitations under that Act, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                March 8 (legislative day, March 7), 2022

Ms. Ernst (for herself, Ms. Klobuchar, Mr. Grassley, Ms. Duckworth, Ms. 
Baldwin, Mr. Marshall, and Mrs. Fischer) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To prohibit the importation of petroleum and petroleum products from 
 the Russian Federation, to amend the Internal Revenue Code of 1986 to 
  establish an income tax credit for the sale or blending of certain 
fuels containing ethanol and to extend tax incentives for biodiesel and 
   renewable diesel, to amend the Clean Air Act with respect to the 
ethanol waiver for Reid vapor pressure limitations under that Act, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Front Energy Independence 
Act''.

SEC. 2. PROHIBITION ON IMPORTATION OF PETROLEUM AND PETROLEUM PRODUCTS 
              FROM THE RUSSIAN FEDERATION.

    (a) Prohibition.--The importation of petroleum and petroleum 
products from the Russian Federation is prohibited.
    (b) Termination.--The prohibition under subsection (a) shall 
terminate on the date on which the President determines and reports to 
Congress that the Government of the Russian Federation recognizes the 
sovereignty and territorial integrity of Ukraine within its 
internationally recognized borders, extending to its territorial 
waters.
    (c) Effective Date.--The prohibition under subsection (a) applies 
with respect to articles entered, or withdrawn from warehouse for 
consumption, on or after the date that is 15 days after the date of the 
enactment of this Act.

SEC. 3. CREDIT FOR SALE OR BLENDING OF ETHANOL FUELS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. CREDIT FOR SALE OR BLENDING OF ETHANOL FUELS.

    ``(a) In General.--For purposes of section 38, the ethanol fuel 
credit determined under this section for any taxable year is an amount 
equal to--
            ``(1) in the case of an applicable taxpayer which is 
        described in subsection (b)(1)(A)--
                    ``(A) for each gallon of E15 blended by such 
                taxpayer, 5 cents, and
                    ``(B) for each gallon of fuel blended by such 
                taxpayer which contains more than 15 volume percent 
                ethanol, 10 cents, and
            ``(2) subject to subsection (c), in the case of an 
        applicable taxpayer which is described in subsection 
        (b)(1)(B)--
                    ``(A) for each gallon of E15 sold by such taxpayer, 
                5 cents, and
                    ``(B) for each gallon of fuel sold by such taxpayer 
                which contains more than 15 volume percent ethanol, 10 
                cents.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Applicable taxpayer.--The term `applicable taxpayer' 
        means--
                    ``(A) an oxygenate blender (as defined in section 
                1090.80 of title 40, Code of Federal Regulations), and
                    ``(B) a retailer (as defined in paragraph (7) of 
                section 101 of the Petroleum Marketing Practices Act 
                (15 U.S.C. 2801)).
            ``(2) E15.--The term `E15' means gasoline that contains 
        more than 13 and no more than 15 volume percent ethanol.
    ``(c) Election.--
            ``(1) In general.--
                    ``(A) Election by oxygenate blender.--Subsection 
                (a)(1) shall apply with respect to any gallon of fuel 
                described in such subsection only if the applicable 
                taxpayer described in subsection (b)(1)(A) elects to 
                have such subsection apply with respect to such gallon 
                of fuel.
                    ``(B) Notification.--The applicable taxpayer 
                described in subparagraph (A) shall provide notice of 
                their election with respect to any gallon of fuel 
                described in such subparagraph to any applicable 
                taxpayer described in subsection (b)(1)(B) to which 
                such fuel is sold, with such notice to be provided on 
                or before the date of such sale.
            ``(2) Credit for retailer available only if not claimed by 
        oxygenate blender.--Subsection (a)(2) shall apply with respect 
        to any gallon of fuel described in such subsection only if the 
        applicable taxpayer described in subsection (b)(1)(A) has not 
        elected (pursuant to paragraph (1)) to apply subsection (a)(1) 
        with respect to such gallon of fuel.
    ``(d) Refundable Credit for Small Retailers.--For purposes of this 
title, in the case of a retailer with not greater than 5 retail 
locations at the close of the taxable year, the credit allowed under 
subsection (a)(2) for such taxable year shall be treated as a credit 
allowable under subpart C (and not allowable under this subpart) for 
such taxable year.
    ``(e) Transfer of Credit.--
            ``(1) In general.--Subject to such regulations or other 
        guidance as the Secretary determines necessary or appropriate, 
        if, with respect to the credit allowed under subsection (a) for 
        any taxable year, the applicable taxpayer elects the 
        application of this subsection for such taxable year with 
        respect to all (or any portion specified in such election) of 
        such credit, the eligible entity specified in such election, 
        and not the applicable taxpayer, shall be treated as the 
        taxpayer for purposes of this title with respect to such credit 
        (or such portion thereof).
            ``(2) Eligible entity.--For purposes of this subsection, 
        the term `eligible entity' means any person within the supply 
        chain for fuel described in such section (a).''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 is amended by 
striking ``plus'' at the end of paragraph (32), by striking the period 
at the end of paragraph (33) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(34) the credit for sale or blending of ethanol fuels 
        under section 45U to which subsection (d) of such section does 
        not apply.''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45U. Credit for sale or blending of ethanol fuels.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel blended or sold after December 31, 2021.

SEC. 4. EXTENSION OF TAX INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Income Tax Credit.--
            (1) In general.--Section 40A(g) is amended by striking 
        ``December 31, 2022'' and inserting ``December 31, 2025''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold or used after December 31, 2022.
    (b) Excise Tax Incentives.--
            (1) Termination.--
                    (A) In general.--Section 6426(c)(6) is amended by 
                striking ``December 31, 2022'' and inserting ``December 
                31, 2025''.
                    (B) Payments.--Section 6427(e)(6)(B) is amended by 
                striking ``December 31, 2022'' and inserting ``December 
                31, 2025''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2022.

SEC. 5. ETHANOL REID VAPOR PRESSURE LIMITATIONS AND E15 LABELING.

    (a) Ethanol Waiver.--
            (1) Reid vapor pressure limitation.--Section 211(h) of the 
        Clean Air Act (42 U.S.C. 7545(h)) is amended--
                    (A) in paragraph (4)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or more'' after ``10 
                        percent''; and
                            (ii) in subparagraph (C), by striking 
                        ``additional alcohol or''; and
                    (B) in paragraph (5)(A), by inserting ``or more'' 
                after ``10 percent''.
            (2) Existing waivers.--Section 211(f)(4) of the Clean Air 
        Act (42 U.S.C. 7545(f)(4)) is amended--
                    (A) by striking ``The Administrator, upon'' and 
                inserting the following:
                    ``(A) The Administrator, upon''; and
                    (B) by adding at the end the following:
                    ``(B) A fuel or fuel additive that has been granted 
                a waiver under subparagraph (A) prior to January 1, 
                2017, and meets all of the conditions of that waiver, 
                other than the waiver's limits for Reid Vapor Pressure, 
                may be introduced into commerce if the fuel or fuel 
                additive meets all other applicable Reid Vapor Pressure 
                requirements.''.
    (b) E15 Labeling Requirements.--Section 211(c) of the Clean Air Act 
(42 U.S.C. 7545(c)) is amended by adding at the end the following:
            ``(5) Revisions required.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of this paragraph, the 
                Administrator shall--
                            ``(i) revise the regulations of the 
                        Administrator, and any other labeling 
                        requirements or conditions that the 
                        Administrator has adopted pursuant to this 
                        section, to prescribe that retailers shall 
                        label gasoline that contains more than 10 
                        percent, but not more than 15 percent, ethanol 
                        to have only the following language: `Contains 
                        no more than 15% ethanol.'; and
                            ``(ii) finalize the proposed rule of the 
                        Environmental Protection Agency entitled `E15 
                        Fuel Dispenser Labeling and Compatibility With 
                        Underground Storage Tanks' (86 Fed. Reg. 5094 
                        (January 19, 2021)).
                    ``(B) Waivers valid.--Notwithstanding the change in 
                labeling required by subparagraph (A)(i), any waiver 
                granted to gasoline that contains more than 10 percent, 
                but not more than 15 percent, ethanol under subsection 
                (f)(4) before the date of enactment of this paragraph 
                shall remain valid.''.

SEC. 6. GRANTS FOR EXPANDING DOMESTIC BIOFUEL CONSUMPTION.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by adding at the end the following:

``SEC. 9015. BIOFUEL INFRASTRUCTURE AND AGRICULTURAL PRODUCT MARKET 
              EXPANSION GRANT PROGRAM.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means--
            ``(1) a State or unit of local government;
            ``(2) a Tribal government;
            ``(3) an authority, agency, partnership, or instrumentality 
        of an entity described in paragraph (1) or (2); and
            ``(4) a group of entities described in paragraphs (1) 
        through (3).
    ``(b) Establishment.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall establish a grant 
program to award grants to eligible entities to carry out the 
activities described in subsection (f).
    ``(c) Purpose.--The purposes of the grant program established under 
subsection (b) shall be--
            ``(1) to increase the use of domestic agricultural crops by 
        expanding or aiding in the expansion of domestic biofuel 
        markets;
            ``(2) to aid in the development of new and additional 
        biofuel markets, marketing facilities, and uses for feedstock 
        derived from agricultural crops and other biomass;
            ``(3) to stabilize prices in agricultural markets by 
        increasing demand for feedstock derived from agricultural 
        crops;
            ``(4) to boost domestic production and use of biofuels to 
        promote rural economic development and job creation; and
            ``(5) to support farm income by increasing demand for 
        feedstock use and production.
    ``(d) Applications.--An eligible entity desiring a grant under this 
section shall submit to the Secretary an application at the time, in 
the manner, and containing the information that the Secretary may 
require.
    ``(e) Eligibility Criteria.--In selecting an eligible entity to 
receive a grant under this section, the Secretary shall consider the 
extent to which the application of the eligible entity proposes--
            ``(1) to convert existing pump infrastructure to deliver 
        ethanol blends with greater than 10 percent ethanol;
            ``(2) to diversify the geographic area selling ethanol 
        blends with greater than 10 percent ethanol;
            ``(3) to support existing or emerging biodiesel, bioheat, 
        and sustainable aviation fuel markets that have existing 
        incentives;
            ``(4) to increase the use of existing fuel delivery 
        infrastructure;
            ``(5) to enable or accelerate the deployment of renewable 
        fuel infrastructure that would be unlikely to be completed 
        without Federal assistance; and
            ``(6) to build and retrofit traditional and pipeline 
        biodiesel terminal operations (including rail lines) and home 
        heating oil distribution centers or equivalent entities--
                    ``(A) to blend biodiesel; and
                    ``(B) to carry ethanol and biodiesel.
    ``(f) Eligible Use.--An eligible entity that receives a grant under 
this section may use the grant funds--
            ``(1) to distribute to private or public entities for costs 
        related to incentivizing deployment of renewable fuel 
        infrastructure;
            ``(2) to convert existing pump infrastructure to deliver 
        ethanol blends greater than 10 percent and biodiesel blends 
        greater than 20 percent;
            ``(3) to install fuel pumps and related infrastructure 
        dedicated to the distribution of higher ethanol blends 
        (including E15 and E85) and higher biodiesel blends up to B100 
        at fueling locations, including--
                    ``(A) local fueling stations;
                    ``(B) convenience stores;
                    ``(C) hypermarket fueling stations; and
                    ``(D) fleet facilities or similar entities; and
            ``(4) to build and retrofit traditional and pipeline 
        biodiesel terminal operations (including rail lines) and home 
        heating oil distribution centers or equivalent entities--
                    ``(A) to blend biodiesel; and
                    ``(B) to carry ethanol and biodiesel.
    ``(g) Certification Requirement.--Any infrastructure used or 
installed with grant funds provided under this section shall be 
certified by the Underwriters Laboratory as infrastructure that 
distributes blends with an ethanol content of 25 percent or greater.
    ``(h) Funding.--
            ``(1) Federal share.--The Federal share of the total cost 
        of carrying out a project awarded a grant under this section 
        shall not exceed 75 percent.
            ``(2) Maximum percentage for certain activities.--An 
        eligible entity receiving a grant under this section shall 
        ensure that Federal funds do not exceed--
                    ``(A) 75 percent of the per pump cost for--
                            ``(i) pumps that can dispense a range of 
                        ethanol blends of E85 or lower (new pumps or 
                        retrofit of existing pumps); and
                            ``(ii) dedicated E15 or E85 pumps (new 
                        pumps or retrofit of existing pumps);
                    ``(B) 50 percent of the terminal cost for terminals 
                with B100 capabilities; or
                    ``(C) 40 percent of the per tank cost for new 
                storage tanks and related equipment associated with new 
                facilities or additional capacity other than 
                replacement of existing storage tanks and related 
                equipment associated with existing facilities.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $100,000,000 
for each of fiscal years 2022 through 2031.''.
                                 <all>