SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cellulosic Ethanol Incentive Act of 
2007''.

SEC. 2. RENEWABLE FUEL PROGRAM.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
amended--
            (1) in paragraph (2)(B)--
                    (A) in clause (i)--
                            (i) in the clause heading, by striking 
                        ``2012'' and inserting ``2030''; and
                            (ii) in the table, by striking the item 
                        relating to 2012 and inserting the following:


          ``2012.......................  10
          2013.........................  11
          2014.........................  12.10
          2015.........................  13.31
          2016.........................  14.64
          2017.........................  16.11
          2018.........................  17.72
          2019.........................  19.49
          2020.........................  20.46
          2021.........................  21.48
          2022.........................  22.56
          2023.........................  23.69
          2024.........................  24.87
          2025.........................  26.11
          2026.........................  27.42
          2027.........................  28.79
          2028.........................  30.23
          2029.........................  31.74
          2030.........................  33.33.'';

                    (B) in clause (ii)--
                            (i) in the clause heading, by striking 
                        ``2013'' and inserting ``2031'';
                            (ii) by striking ``2013'' and inserting 
                        ``2031''; and
                            (iii) by striking ``2012'' and inserting 
                        ``2030'';
                    (C) by striking clause (iii) and inserting the 
                following:
                            ``(iii) Minimum quantity derived from 
                        cellulosic biomass.--
                                    ``(I) Ratio.--For calendar year 
                                2010 and each calendar year thereafter, 
                                the 2.5-to-1 ratio referred to in 
                                paragraph (4) shall apply only to the 
                                quantity of cellulosic biomass ethanol 
                                sold or introduced into commerce during 
                                a calendar year that is in excess of 
                                the minimum quantity of renewable fuel 
                                derived from cellulosic biomass 
                                required for that calendar year.
                                    ``(II) Minimum quantity.--For 
                                calendar year 2010 and each calendar 
                                year thereafter, the applicable volume 
                                referred to in clause (i) shall contain 
                                a minimum volume of renewable fuel 
                                derived from cellulosic biomass, as 
                                determined in accordance with the 
                                following table:


 
                                                            Minimum volume derived from cellulosic biomass (in
                    ``Calendar year:                                       billions of gallons):
 
          2010..........................................  0.25
          2011..........................................  0.25
          2012..........................................  0.5
          2013..........................................  0.65
          2014..........................................  0.85
          2015..........................................  1.10
          2016..........................................  1.64
          2017..........................................  3.11
          2018..........................................  4.72
          2019..........................................  6.49
          2020..........................................  7.46
          2021..........................................  8.48
          2022..........................................  9.56
          2023..........................................  10.69
          2024..........................................  11.87
          2025..........................................  13.11
          2026..........................................  14.42
          2027..........................................  15.79
          2028..........................................  17.23
          2029..........................................  18.74
          2030..........................................  20.33.'';


                    (D) in clause (iv)--
                            (i) by striking ``2013'' and inserting 
                        ``2031''; and
                            (ii) in subclause (II)--
                                    (I) in item (aa), by striking 
                                ``7,500,000,000'' and inserting 
                                ``33,330,000,000''; and
                                    (II) in item (bb), by striking 
                                ``2012'' and inserting ``2030''; and
                    (E) by adding at the end the following:
                            ``(v) Regional requirement.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), not less 
                                than 30 percent of the total volume of 
                                renewable fuel required in a State 
                                under this subsection shall be derived 
                                from the region of the Environmental 
                                Protection Agency in which the State is 
                                located.
                                    ``(II) Exception.--The 
                                Administrator may reduce or waive the 
                                requirement in subclause (I) for a 
                                region if the Administrator determines 
                                that it would be impracticable for the 
                                region to produce the required volume 
                                of renewable fuel.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``2011'' and 
                inserting ``2029''; and
                    (B) in subparagraph (B), by striking ``2012'' and 
                inserting ``2029''.
Output: Cellulosic Ethanol Incentive Act of 2007 - Amends the Clean Air Act to: (1) increase the volume of renewable fuel required to be in gasoline for 2012; (2) prescribe such volumes applicable for 2013 through 2030; (3) apply existing requirements (with a revised ratio) for determining volumes for years not specified to calendar year 2031 and thereafter; (4) prescribe increasing minimum quantities of renewable fuel that must be derived from cellolosic biomass for 2010 through 2030; and (5) apply, for 2010 and thereafter, the 2.5-to-1 ratio of cellulosic biomass ethanol or waste derived ethanol to renewable fuel only to the quantity of cellulosic biomass ethanol sold that is in excess of the minimum quantity of renewable fuel derived from cellulosic biomass required for that year.

Requires not less than 30% of the total volume of renewable fuel required in a state under this Act to be derived from the Environmental Protection Agency (EPA) region in which the state is located. Allows the Administrator of the EPA to reduce or waive such requirement if it would be impracticable for the region to produce the required volume of renewable fuel.