agriculture law: rl34136

8/14/2019 Agriculture Law: RL34136

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Order Code RL34136

Biofuels Provisions in H.R. 3221 and H.R. 6:

A Side-by-Side Comparison

August 21, 2007

Brent D. YacobucciSpecialist in Environmental and Energy Policy

Resources, Science, and Industry Division


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Biofuels Provisions in H.R. 3221 and H.R. 6: A Side-by-Side Comparison

Summary

This report provides a side-by-side comparison of biofuels-related provisionsin the House- and Senate-passed energy bills, H.R. 3221 and H.R. 6, respectively.H.R. 3221 (the New Direction for Energy Independence, National Security, andConsumer Protection Act and the Renewable Energy and Energy Conservation TaxAct of 2007) was approved by the House on August 4, 2007. The Senate approvedits version of H.R. 6 (the Renewable Fuels, Consumer Protection, and Energy

Efficiency Act of 2007) on June 21, 2007. Both bills cover a wide range of energytopics with extensive attention to biofuels, including ethanol and biodiesel.

Key biofuels-related provisions of the two bills include:

! a major expansion of the renewable fuel standard (RFS) establishedin the Energy Policy Act of 2005 (P.L. 109-58) [Senate bill];

! expansion and/or modification of tax credits for alternative fuel

refueling infrastructure and for ethanol, and renewable diesel fuels[House bill];

! grants and loan guarantees for biofuels research, development,deployment, and production [both bills];

! studies of the potential for ethanol pipeline transportation, expandedbiofuel use, market and environmental impacts of increased biofueluse, and the effects of biodiesel on engines [both bills]; and

! reauthorization of biofuels R&D at the U.S. Departments of Energy

and Agriculture [both bills].


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Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Key Elements of House and Senate Energy Bills . . . . . . . . . . . . . . . . . . . . . . . . . 2

List of Tables

Table 1. Side-by-Side Comparison of Biofuels Provisions in Current Law withH.R. 3221 and H.R. 6 (Senate Version) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


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Biofuels Provisions in H.R. 3221 and H.R. 6:A Side-by-Side Comparison

Introduction

With recent high energy prices, concerns over energy security, and the desire toreduce air pollutant and greenhouse gas emissions, there is ongoing congressionalinterest in promoting greater use of alternatives to petroleum fuels. Biofuels transportation fuels produced from plants and other organic materials haveattracted particular interest. Ethanol and biodiesel, the two most widely used biofuels,receive significant federal support in the form of tax incentives, loan and grantprograms, and regulatory programs.1

The Energy Policy Act of 2005 (P.L. 109-58) established a renewable fuelstandard (RFS). The RFS requires the increasing use of renewable fuel in gasoline,starting at 4.0 billion gallons in 2006, increasing to 7.5 billion gallons in 2012.Although not an explicit ethanol mandate, it is expected that the majority of thisrequirement will be met using corn-based ethanol.2 About 4.0 billion gallons of cornethanol were consumed in 2005, so the RFS represents roughly a doubling of U.S.ethanol consumption over seven years. However, the U.S. ethanol industry is

expanding rapidly, outpacing the required growth in the RFS. As of August 1, 2007,existing U.S. production capacity was roughly 6.5 billion gallons per year, withanother 6.4 billion gallons of capacity under construction or in the planning stages.Because this capacity will likely outpace the current RFS, some proponents of corn-based ethanol support an increase in the mandated levels of the RFS.

Because of the rapid expansion of U.S. corn ethanol capacity, there are concernsthat the United States will soon reach the limit of ethanol that can be produced from

corn. Critics of corn-based ethanol argue that the industry does not need continuedgovernment support, and that current corn demand for ethanol is putting a strain oncorn and other grain markets, leading to increases in other commodity prices, suchas livestock feed, which then leads to higher dairy and meat prices.3 Critics alsoargue that the environmental costs of corn-based ethanol may outweigh the benefits.


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Because of concerns over corn-based ethanol, as well as interest in diversifyingenergy supply, there is growing interest in developing biofuels that rely on othersources of biomass, including agricultural wastes, municipal solid waste, and

dedicated energy crops such as perennial grasses, fast-growing trees, and algae. Thisinterest has led to proposals to support and/or mandate biofuels produced fromfeedstocks other than corn starch through explicit requirements, R&D funding, and/ortax incentives.4 Non-corn biofuels could include fuels produced from cellulosicmaterial (such as perennial grasses), ethanol produced from sugarcane or beets, andbiodiesel or renewable diesel produced from vegetable or animal oils.5

Key Elements of House and Senate Energy Bills

This report provides a side-by-side comparison of biofuels-related provisionsin the House- and Senate-passed energy bills, H.R. 3221 and H.R. 6, respectively.H.R. 3221 (the New Direction for Energy Independence, National Security, andConsumer Protection Act and the Renewable Energy and Energy Conservation TaxAct of 2007) was approved by the House on August 4, 2007. The Senate approved

its version of H.R. 6 (the Renewable Fuels, Consumer Protection, and EnergyEfficiency Act of 2007) on June 21, 2007.6 Both bills cover a wide range of energytopics including biofuels, electricity generation, energy efficiency, carbon capture andstorage, and oil and gas royalties.

On July 27, 2007, the House passed H.R. 2419, the 2007 Farm Bill (the Farm,Nutrition, and Bioenergy Act of 2007). Like the 2002 Farm Bill, Title IX of the 2007Farm Bill is dedicated to farm-related energy issues, including biofuels. Title V of

H.R. 3221 contains provisions similar or identical to provisions passed in Title IX ofH.R. 2419. For more information on these Farm Bill provisions, see CRS ReportRL34130,Renewable Energy Policy in the 2007 Farm Bill.

Table 1 contains a section-by-section comparison of the biofuels provisions inH.R. 3221 and H.R. 6 with current law. The table is organized in the same order asthe House bill, with non-comparable Senate bill sections shown at the end. Keyprovisions of the bills include:

! a major expansion of the RFS established in the Energy Policy Actof 2005 [Senate bill];


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! expansion and/or modification of tax credits for alternative fuelrefueling infrastructure and for ethanol, and renewable diesel fuels[House bill];

! grants and loan guarantees for biofuels research, development,deployment, and production [both bills];

! studies of the potential for ethanol pipeline transportation, expandedbiofuel use, market and environmental impacts of increased biofueluse, and the effects of biodiesel on engines [both bills]; and

! reauthorization of biofuels R&D at the U.S. Departments of Energyand Agriculture [both bills].


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Table 1. Side-by-Side Comparison of Biofuels Provisions in Current Law with H.R. 3221 and H.R. 6 (Senate Version)

Topic H.R. 3221 H.R. 6 (Senate Version) Current Law Notes

H.R. 3221, Title IV Science and Technology

Biofuels and BiorefineryInformation Center

Directs the Secretary ofEnergy to establish atechnology transfer center toprovide information onbiofuels and biorefineries.[Sec. 4402]

Similar provision.[Sec. 127]

No current provision.

Biofuels Infrastructure Directs the Secretary ofEnergy to conduct an R&Dprogram on the effects ofbiofuels on existing

transportation fuel distributionsystems. [Sec. 4403]

Directs the Secretary ofEnergy to provide grants forpilot programs to expandinfrastructure for

ethanol/gasoline blends ofbetween 11% and 84%ethanol, and renewablefuel/diesel fuel blends of atleast 10% renewable diesel.$200 million is authorized tobe available until expended.[Sec. 121]

No current provision. In addition, sec. 9301 of H.R. 3221 (below) wouldprovide grants for theinstallation of renewable

fuel infrastructure at retailstations.

Biodiesel Report Requires the Secretary ofEnergy to report to Congresson the R&D challenges toexpanding biodiesel use to2.5% of total diesel fuel use byvolume. [Sec. 4404]

Similar provision, but wouldrequire a study of thechallenges of expandingbiodiesel use to 5% of totaldiesel fuel use. [Sec. 130(a)]

No current provision. Currently, biodieselrepresents less than 1% oftotal diesel consumption.


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Biogas Requires the Secretary ofEnergy to report to Congresson the R&D challenges toexpanding biogas andbiogas/natural gas blends to5% of fuel use. [Sec. 4405]

No comparable provision. No current provision.

Bioresearch Centers forSystems Biology Program

Requires the establishment ofat least five bioresearch centersthat focus on biofuels to beincluded in the R&D programestablished in Sec. 977 of P.L.109-58. [Sec. 4406]

Similar to H.R. 3221, butwould require theestablishment of at least 11bioresearch centers focused onbiofuels. [Sec. 123]

The Department of Energy(DOE) is required to establisha program of R&D anddemonstration of microbialand plant systems biology,protein science, andcomputational biology.Biomedical research and

research related to humans arenot permitted as part of theprogram. [Energy Policy Actof 2005 - P.L. 109-58, Sec.977]

See also Sec. 4413(a) ofH.R. 3221 (below), whichwould expand the topicscovered by the program.

Grants for Biofuel

Production and R&D inCertain States

Authorizes $25 millionannually for FY2008-FY2010for R&D and commercial

application of biofuelproduction in states with lowrates of ethanol and cellulosicethanol production (this couldin effect apply to all states).[Sec. 4407]

Similar to H.R. 3221. [Sec.125]

The Secretary of Energy isauthorized $25 millionannually for FY2006-FY2010

for R&D and implementationof renewable fuel productiontechnologies in states with lowrates of ethanol production thatare under the federalreformulated gasoline (RFG)program. [P.L. 109-58, Sec.1511(d)]

The funding authorized inthese bills would be inaddition to amounts in

current law. Languagesubstantially similar tothese bill sections is alsoin Sec. 9315 of H.R.3221(see below).


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Biorefinery EnergyEfficiency

Amends Sec. 932 of P.L. 109-58 to include research onenergy efficiency atbiorefineries and ontechnology to convert existingcorn-based ethanol plants toprocess cellulosic materials.[Sec. 4408]

No comparable provision. The Secretary of Energy isdirected to conduct research oncommercial applications ofbiomass and bioenergy. [P.L.109-58, Sec. 932]

Study of Increased

Consumption of Ethanol-Blended Gasoline with

Higher Levels of Ethanol

The Secretary of Energy isdirected to study the potentialfor using ethanol/gasolineblends in the range of 10% to40% ethanol. Currently, onlyup to 10% ethanol is permittedby federal regulations andwarrantied by automakers forconventional vehicles. [Sec.4409]

Similar provision. [Sec. 142] No current provision. A similar provision iscontained in Sec. 9305 ofH.R. 3221 for a study ofincreasing gasolineethanol content above10% (see below).

Study of Optimization ofFlexible Fueled Vehicles

to use E-85 Fuel

The Secretary of Energy isdirected to study whetheroptimizing flexible fuelvehicles (FFVs) to run on E85

would increase their fuelefficiency. [Sec. 4410]

Similar provision. [Sec. 144] No current provision. Current FFVs areoptimized to run ongasoline, since that tendsto be their primary fuel.

Study of Engine

Durability andPerformance Associated

with the Use of Biodiesel

The Secretary of Energy isdirected to study the effects ofvarious biodiesel/diesel blendson engine performance anddurability. [Sec. 4411]

Similar provision, except thatthe Secretary is required tostudy only the effects onengine durability but notperformance. [Sec. 146]



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Bioenergy R&D -Authorization of

Appropriation

Amends Sec. 931 of P.L. 109-58 to authorize a total of $1.2billion for FY2008-FY2010 forR&D on biomass, bioenergy,and bioproducts. [Sec. 4412]

Amends Sec. 931 of P.L. 109-58 to authorize a total of $775million for FY2008-FY2009.[Sec. 122]

The Secretary of Energy isdirected to conduct R&D onbiomass, bioenergy, andbioproducts. A total of $525million is authorized forFY2008-FY2009. [P.L. 109-58, Sec. 931(c)]

Funding for relatedbiomass research throughthe Department ofAgriculture is containedin Sec. 5007 of H.R. 3221.

Environmental Researchand Development

DOE is required to expand thebiological R&D programestablished in Sec. 977 of P.L.109-58 to includeenvironmental effects,potential for greenhouse gasreductions, and the potentialfor more sustainableagriculture. [Sec. 4413(a)]

No comparable provision. DOE is required to establish aprogram of research,development, anddemonstration in microbial andplant systems biology, proteinscience, and computationalbiology. Biomedical researchand research related to humansare not permitted as part of theprogram. [P.L. 109-58, Sec.977]

See also Sec. 4406 of H.R.3221 (above).

Lifecycle Analysis Toolsfor Evaluating the

Energy Consumption andGreenhouse Gas

Emissions from Biofuels

The Secretary of Energy isrequired to study and developtools for evaluating thelifecycle energy consumption

and greenhouse gas emissionsfrom biofuels. [Sec. 4413(b)]

Similar provision, but thestudy is required to cover onlygreenhouse gas emissions butnot energy consumption.

[Sec. 148]


Small-Scale Production

and Use of Biofuels

The Secretary of Energy isrequired to establish a R&Dprogram to facilitate small-scale production and local andon-farm use of biofuels. [Sec.4413(c)]



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Study of Optimization ofBiogas Used in Natural

Gas Vehicles

The Secretary of Energy isdirected to study the potentialfor optimizing natural gasvehicles to run on biogas(methane produced frombiological feedstocks). [Sec.4414]


Standards for BiofuelsDispensers

If appropriate privatestandards for biofuelsdispensers have not beendeveloped by the date ofenactment, the Secretary ofEnergy is required to developsuch standards to promotebroader biofuel use. [Sec.4415]


Algal Biomass The Secretary is required toreport to Congress on progresstoward developing algae as afeedstock for biofuelproduction. [Sec. 4416]

No comparable provision. Various statutes promotebiofuels R&D, including thedevelopment of biofuels fromalgae, at the Department ofEnergy.


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H.R. 3221, Title V Agriculture Energy [Related language to this title also appears in H.R. 2419, the 2007 Farm Bill, as passed by the House]

Federal Procurement ofBiobased Products

Amends definitions andprocedures for determiningeligible products under the2002 Farm Bill (P.L. 107-171)program on federal

procurement of biobasedproducts. For FY2008-FY2012, $2 million in annualmandatory Commodity CreditCorporation (CCC) funding isauthorized for product testing.[Sec. 5002]

No comparable provision. Under the 2002 Farm Bill,federal agencies are currentlyrequired to purchase biobasedproducts under certainconditions. Current law

authorizes a voluntarybiobased labeling program.USDA regulations definebiobased products, identifybiobased product categories,and specify the criteria forqualifying those products forpreferred procurement.Mandatory CCC funding of $1million is authorized for eachof FY2002 through FY2007for testing biobased products.[P.L. 107-171, Sec. 9002]

Related language to H.R.3221 was passed by theHouse in July as Sec.9002 of the 2007 FarmBill (H.R. 2419).


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Loan Guarantees forBiorefineries and Biofuel

Production Plants

Extends the 2002 Farm Billbiorefinery developmentprogram through FY2012 andprovides new loan guaranteeauthority for biorefineries,with a total of $600 milliongoing to loans less than $100

million, and $1 billion forloans up to $250 million. Theloan guarantee would cover90% of an eligible loan.Requires that constructioncontractors and subcontractorson federally assisted loanguarantee projects pay their

employees not less than theprevailing wage in the samelocality under the Davis-BaconAct. Specifies mandatoryCCC funding of $50 million inFY2008; $65 million inFY2009; $75 million inFY2010; $150 million inFY2011; and $300 million in

FY2012. [Sec. 5003]

Amends Sec. 1703 of theEnergy Policy Act of 2005 toallow for projects that produceadvanced biofuels defined asbiofuels produced fromfeedstocks other than cornstarch (see H.R. 6, Sec. 111).

[Sec. 124]

Under the Energy Policy Actof 2005, the Department ofEnergy is directed to provideloan guarantees for variousrenewable energy and low-emission energy projects. [P.L.109-58, Sec. 1703]

The 2002 Farm Bill authorizeda grant program to help financethe cost of developing andconstructing biorefineries andbiofuel production plants tocarry out projects todemonstrate the commercial

viability of converting biomassto fuels or chemicals.However, no funds have beenappropriated for the program.[P.L. 107-171, Sec. 9003]

Related language to H.R.3221 (with larger fundingauthorizations) waspassed by the House asSec. 9003 of the 2007Farm Bill (H.R. 2419).


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Biodiesel Fuel EducationProgram

Extends the 2002 Farm BillBiodiesel Fuel EducationProgram through FY2012 withmandatory funding of $2million for each of FY2008through FY2012. [Sec. 5004]

No comparable provision. This program awardscompetitive grants to nonprofitorganizations that educategovernmental and privateentities operating vehiclefleets, and educate the publicabout the benefits of biodiesel

fuel use. Mandatory CCCfunding of $1 million annuallywas authorized for FY2003through FY2007. [P.L. 107-171, Sec. 9004]

Identical language to H.R.3221 was passed by theHouse as Sec. 9017 of the2007 Farm Bill (H.R.2419).

Energy Audit and

Renewable EnergyDevelopment Program

Extends the 2002 Farm BillEnergy Audit and RenewableEnergy Development Programthrough 2012. [Sec. 5005]

No comparable provision. This is a competitive grantprogram for eligible entities tocarry out a program to assistfarmers, ranchers, and ruralsmall businesses in becomingmore energy efficient and inusing renewable energytechnology and resources.Authorized appropriations ofsuch sums as are necessary tocarry out the program for

FY2002 through FY2007.[P.L. 107-171, Sec. 9005]

Identical language to H.R.3221 was passed by theHouse as Sec. 9004 of the2007 Farm Bill (H.R.2419).


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Renewable EnergySystems and Energy

Efficiency Improvements

Renames the 2002 Farm Billprogram on renewable energysystems and energy efficiencyimprovements as the RuralEnergy for America Program.Raises the loan guarantee levelfrom $10 million to $25

million and caps federalcost-share at 75%. Allows forfeasibility studies to be eligiblefor the program. Increasesmandatory CCC funding to$40 million in FY2008; $60million in FY2009; $75million in FY2010; $100

million in FY2011; and $150million in FY2012. [Sec. 5006]

No comparable provision. This program authorizes loans,loan guarantees, and grants tofarmers, ranchers, and ruralsmall businesses to purchaseand install renewable energysystems and to make energyefficiency improvements.

Mandatory CCC funding of$23 million annually forFY2003 through FY2007.[P.L. 107-171, Sec. 9006]

Related language to H.R.3221 (with a total of $75million more for FY2008-FY2012) was passed bythe House as Sec. 9005 ofthe 2007 Farm Bill (H.R.2419).


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Biomass Research andDevelopment Act of 2000

Modifies and extends theBiomass Research andDevelopment Program throughFY2012. Adds mandatoryCCC funding of $25 million inFY2008; $50 million inFY2009; $75 million in

FY2010; $100 million inFY2011; and $100 million inFY2012. Also maintains theexisting authorization ofappropriations of $200 millionannually for FY2008-FY2015.[Sec. 5007]

No comparable provision. The Biomass Research andDevelopment Act of 2000(reauthorized by the 2002Farm Bill) providescompetitive funding for R&Dand demonstration projects onbiofuels and bio-based

chemicals and products,administered jointly by USDAand DOE. Specifiedmandatory CCC funding of $5million in FY2002 and $14million annually for FY2003through FY2007 to remainavailable until expended. Also

authorized appropriations of$200 million for each ofFY2006 through FY2015.[P.L. 107-171, Sec. 9008]



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Adjustments to theBioenergy Program

Renews and extends the 2002Farm Bill Bioenergy Programthrough 2012 with increasedmandatory CCC funding of$175 million in FY2008; $215million in FY2009; $250million in FY2010; $275

million in FY2011; and $300million in FY2012. Ethanolproduced from corn starch isexcluded. Renewable dieselproduced from biomass atpetroleum refineries may beexcluded, as well. Expandseligibility for combined heat

and power production usingbiomass at biofuels plants andbiomass gasification as typesof bioenergy eligible for theproduction incentive. [Sec.5008]

No comparable provision. Originally a ClintonAdministration initiative, theBioenergy Program was madestatutory by the 2002 FarmBill. The program providesCCC incentive payments tobiofuels producers based on

year-to-year increases in thequantity of biofuel produced.Mandatory CCC funding of$150 annually for FY2002through FY2006. No fundingwas available for FY2007.[P.L. 107-171, Sec. 9010]



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Research, Extension, andEducational Programs on

Biobased EnergyTechnologies and

Products

Extends the Sun Grantprogram through 2012 withauthorized appropriations of$75 million for each ofFY2008 through FY2012.[Sec. 5009]

No comparable provision. The Sun Grant programestablished 5 national sungrant research centers based atland-grant universities andeach covering a differentregion. The purpose is toenhance coordination and

collaboration between USDA,DOE, and land-grantuniversities in thedevelopment, distribution, andimplementation of biobasedenergy technologies.Authorized appropriations of$25 million in FY2005, $50

million in FY2006, and $75million annually for FY2006through FY2010.

Related language to H.R.3221 was passed by theHouse as Sec. 9008 of the2007 Farm Bill (H.R.2419).

Energy Council of the

Department ofAgriculture

Directs the Secretary ofAgriculture to establish anenergy council to coordinatethe energy policy of USDAand consult with other federal

departments and agencies.[Sec. 5010]

No comparable provision. No current provision. Identical language to H.R.3221 was passed by theHouse as Sec. 9009 of the2007 Farm Bill (H.R.2419).


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Forest BioenergyResearch Program

Establishes a new R&Dprogram to promote the use ofwoody biomass for bioenergyproduction, includingfeedstock issues such as yieldand new varieties. A total of$36 million in mandatory CCC

funding is provided forFY2008-FY2012. [Sec. 5011]

No comparable provision. No current provision. Related language to H.R.3221 (with a total of $39million more for FY2008-FY2012) was passed bythe House as Sec. 9019 ofthe 2007 Farm Bill (H.R.2419).

Feedstock FlexibilityProgram for Bioenergy

Producers

Requires that USDA establishand administer (starting inFY2008) a sugar-for-ethanolprogram using sugar intendedfor food use but deemed to bein surplus. USDA would

implement the program only inthose years when purchases aredetermined to be necessary toensure that the sugar programoperates at no cost. Such sumsas are necessary to carry outthe program are authorized.[Sec. 5012]

No comparable provision. No current provision. Related language to H.R.3221 was passed by theHouse as Sec. 9013 of the2007 Farm Bill (H.R.2419).


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H.R. 3221, Title VIII Transportation and Infrastructure

Capitol Complex E-85Refueling Station

The Architect of the Capitol isauthorized to install an E85tank and pumping system on ornear the Capitol Grounds FuelStation. [Sec. 8652]


H.R. 3221, Title IX Energy and Commerce

Renewable FuelInfrastructure

Development

Establishes a grant program forthe installation of refuelinginfrastructure for E85 and B20(20% biodiesel, 80%conventional diesel) fuels.Authorizes $200 million

annually for FY2008-FY2014.Large, vertically integratedoil companies are ineligiblefor funding. [Sec. 9301]

No comparable provision. No current provision. See also Sec. 4403 of H.R.3221 (above).

Prohibition on Franchise

Agreement RestrictionsRelated to Renewable

Fuel Infrastructure

Amends the PetroleumMarketing Practices Act (15U.S.C. 2801 et seq.) to make itunlawful for a franchiser to

prohibit a franchisee frominstalling E85 or B20 tanksand pumps within the franchiseagreement. [Sec. 9302]



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Renewable FuelDispenser Requirements

The Secretary of Energy isrequired to report to Congresson the market penetration offlexible fuel vehicles and onthe feasibility of requiring fuelretailers to install E85infrastructure. [Sec. 9303]


Pipeline Feasibility Study The Secretary of Energy, inconsultation with the Secretaryof Transportation, is requiredto report on the feasibility ofconstructing dedicated ethanolpipelines. [Sec. 9304]

Substantially similar, exceptthat the Secretary of Energymust consult with theSecretary of Agriculture, aswell. [Sec. 143]


Study of Ethanol-Blended

Gasoline with GreaterLevels of Ethanol

The Secretary of Energy is

directed to study the potentialfor increasing the ethanolcontent in gasoline above 10%.[Sec. 9305]

Similar provision, except that

the study is to coverethanol/gasoline blendsbetween 10% and 40%ethanol. [Sec. 142]

No current provision. A similar provision to

Sec. 142 of H.R. 6 iscontained in Sec. 4409 ofH.R. 3221 (see above).

Study of the Adequacy of

Railroad Transportationof Domestically-Produced

Renewable Fuel

The Secretary of Energy, inconsultation with the Secretaryof Transportation, is requiredto report on the adequacy of

railroad transportation ofdomestically producedrenewable fuel. [Sec. 9306]



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Standard Specificationsfor Biodiesel

If ASTM International(originally the AmericanSociety for Testing andMaterials) has not adopted astandard for B20 within oneyear of enactment, theAdministrator of the

Environmental ProtectionAgency (EPA) is required todo so. No new funding isauthorized. [Sec. 9307]

The President is required topromulgate rules to ensure thatrenewable diesel fuelsubstitutes comply withapplicable ASTM standards.Authorizes $3 million annuallyfor FY2008-FY2010. [Sec.

130(c)]


Grants for CellulosicEthanol Production

Extends the program ofconstruction grants forcellulosic biofuel facilitiesestablished in P.L. 109-58

through FY2010 andauthorizes $500 millionannually for FY2009 andFY2010. Directs the Secretaryof Energy to give priority toprojects that promotefeedstock diversity andgeographic dispersion of

production facilities. [Sec.9308]

No comparable provision. The Secretary of Energymay provide grants for theconstruction of facilities toproduce renewable fuels

(including ethanol) fromcellulosic biomass, agriculturalbyproducts, agricultural waste,and municipal solid waste. Atotal of $750 million isauthorized for FY2006 throughFY2008. [P.L. 109-58, Sec.1512]


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Consumer EducationCampaign Relating to

Flexible-Fuel Vehicles

The Secretary ofTransportation is required tocarry out an educationalprogram to inform consumersabout flexible fuel vehicles,including which existingvehicles may be fueled on E85.

[Sec. 9309]


Review of New

Renewable Fuels or NewRenewable Fuel Additives

Prohibits the introduction ofnew renewable fuels orrenewable fuel additives unlessEPA explicitly grants a waiverunder Sec. 211(f) of the CleanAir Act. EPA is required totake final action within 270

days of receipt of the waiverrequest. [Sec. 9310]

No comparable provision. Under Sec. 211(f) of the CleanAir Act, no new fuels or fueladditives may be introducedinto commerce unless granteda waiver by EPA. If EPA hasnot acted within 180 days ofreceipt of a waiver request, the

waiver is treated as granted.[42 U.S.C. 7545(f)]

Currently, inaction byEPA allows a fuel toreceive the waiver. UnderH.R. 3221, no waiverwould be granted withoutexplicitapproval by EPA.


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Domestic ManufacturingConversion Grant

Program

Expands the incentive programfor the domestic production ofhybrid and advanced dieselvehicle established in P.L.109-58 to include flexible fuelvehicles. Requires thatpriority be given to auto and

parts manufacturing facilitiesthat have recently ceasedoperation or will ceaseoperation in the near future.Allows coordination withsimilar state programs. [Sec.9311]

No comparable provision. The EPA Administrator isrequired to establish a programto encourage the domesticproduction and sales ofefficient hybrid and advanceddiesel vehicles. The programmust include grants to

domestic vehiclemanufacturers to encourageproduction and provideconsumer purchase incentives.Such sums as necessary areauthorized for FY2006-FY2015. [P.L. 109-58, Sec.712]

Cellulosic Ethanol andBiofuels Research

Authorizes the Secretary ofEnergy to provide biofuelsR&D grants to 10 institutionsfrom land-grant colleges,Historically Black Colleges orUniversities, tribal servinginstitutions, or Hispanicserving institutions. $50

million for FY2008 isauthorized to be appropriated,to be available until expended.[Sec. 9312]



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Federal Fleet RefuelingCenters

Requires the head of eachfederal agency to install atleast one renewable fuel pumpat each federal fleet refuelingcenter by January 1, 2010.[Sec. 9313]


Study of Impact ofIncreased RenewableFuel Use

The Secretary of Energy, inconsultation with the EPAAdministrator, theAdministrator of the EnergyInformation Administration(EIA), and the Secretary ofAgriculture, is required tostudy and assess the impact ofrenewable fuels on the U.S.

economy. Study elementsinclude the effects on energysecurity, air and water quality,infrastructure, job creation,and agricultural commoditymarkets. The Secretary mustreport within two years ofenactment and update the

report every three yearsthereafter. [Sec. 9314]

The EPA Administrator isrequired to enter into anagreement with the NationalAcademy of Sciences to studythe effects on the environmentfrom increased renewable fueluse. Study elements includethe effects on air and waterquality, land use patterns,

deforestation, greenhouse gasemissions, habitat, and thelong-term capacity of theUnited States to producebiomass feedstocks. TheAdministrator must submit tworeports: 1) within three yearsof enactment; and 2) by

December 31, 2015. [Sec.162]

The EPA Administrator mustpublish a draft analysis of theeffects of the fuels provisionsin P.L. 109-58 on air pollutantemissions and air quality. [P.L.109-58, Sec. 1507]

The EPA Administrator isrequired to conduct a survey to

determine the market share ofgasoline containing ethanoland other renewable fuels.[P.L. 109-58, Sec. 1501(c)]

DOE is required to collect andpublish monthly survey dataon the production, blending,

importing, demand, and priceof renewable fuels, both on anational and regional basis.[P.L. 109-58, Sec. 1508]

See also Sec. 14002 ofH.R. 3221, which wouldrequire the Secretary ofthe Treasury to studyrelated topics.


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Grants for RenewableFuel Production R&D in

Certain States

Authorizes $25 millionannually for FY2008-FY2010for research, development, andcommercial application ofbiofuel production in stateswith low rates of ethanol andcellulosic ethanol production.

[Sec. 9315]

Similar to H.R. 3221. [Sec.125]

The Secretary of Energy isauthorized to conduct R&Dand deployment of renewablefuel production technologies incertain states. [P.L. 109-58,Sec. 1511(d)]

For more information, seeSec. 4407 of H.R. 3221(above).

Study of Effect of Oil

Prices

The Secretary of Energy isrequired to study the effects onrenewable fuel production ofoil priced at $40 a barrel ormore. [Sec. 9316]


Biodiesel as Alternative

fuel for CAFE Purposes

Amends the Corporate

Average Fuel Economy(CAFE) program to allowvehicles capable of operatingon B20 to be treated asalternative fuel vehicleseligible for CAFE credits.[Sec. 9317]

No comparable provision. Under the Corporate Average

Fuel Economy (CAFE)program, automakers maygenerate credits toward theircompliance for the productionand sale of alternative fuelvehicles, as defined in law.Currently, B20 vehicles are notconsidered alternative fuelvehicles. [49 U.S.C. 32901 etseq.]

Expanding the definition

of alternative fuel vehicleto include B20 couldmake all diesel passengercars and light truckseligible for credits underCAFE. Currently, somediesel passenger vehiclesare warrantied to run onB5, but there seem to befew technical barriers tomaking some or all newdiesel vehicles B20-capable.


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H.R. 3221 Tax Provisions, Title XII Conservation

Extension andModification of

Alternative Fuel VehicleRefueling Property

Credit

Increases the alternative fuelrefueling property credit to50% of the cost of theinstallation, up to $50,000.Extends the credit through

December 31, 2010. [Sec.12002]

No comparable provision. An owner of a retail fuelstation may take a tax creditfor the installation ofalternative fuel tanks andpumps. The credit is equal to

30% of the cost of theinstallation, up to $30,000.For alternative fuels other thanhydrogen, the credit expires onDecember 31, 2009. [P.L.109-58, Sec. 1342]

Extension andModification of Credits

for Biodiesel andRenewable Diesel

Amends the definition ofrenewable diesel under the

renewable diesel tax credit toexclude renewable diesel andrenewable diesel mixturesproduced through certainprocesses. Extends the taxcredits through December 31,2010. [Sec. 12003]

No comparable provision. A tax credit is available for theretail sale or use of biodiesel

and renewable diesel. Thecredit is equal to $1.00 pergallon for renewable diesel orbiodiesel produced from virginagricultural products. Thecredit expires on December 31,2008. [P.L. 108-357, P.L. 109-58]

Also see Sec. 13011 ofH.R. 3221 below.

Credit for Production ofCellulosic Alcohol

Establishes a credit of $0.50per gallon for ethanolproduced from cellulosicmaterials, in addition to anyexisting credits. [Sec. 12004]

No comparable provision. All fuel ethanol is allowed atax credit of $0.54 per gallon,regardless of feedstock. Smallproducers may claim anadditional credit of $0.10 pergallon. [26 U.S.C. 40]


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H.R. 3221 Tax Provisions, Title XIII Revenue Provisions

Clarification of Eligibilityfor Renewable Diesel

Credit

Explicitly excludes fuelsderived fromcoprocessing biomass with afeedstock which is notbiomass from eligibility for

the renewable diesel tax credit.[Sec. 13011]

No comparable provision. A tax credit is available for theretail sale or use of renewablediesel. The credit is equal to$1.00 per gallon of renewablediesel. [P.L. 109-58]

This provision wouldlimit tax credits forproduction of renewablediesel at existingpetroleum refineries.

Clarification ThatCredits or Fuel are

Designed to Provide anIncentive for United

States Production

Limits eligibility for thebiodiesel and renewable dieseltax credits to fuels produced inthe United States. [Sec. 13012]

No comparable provision. A tax credit is available for theretail sale or use of biodieseland renewable diesel blendedinto conventional diesel. Thecredit does not recognize pointof origin. [P.L. 108-357, P.L.

109-58]


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H.R. 3221 Tax Provisions, Title XIV Other Provisions

Comprehensive Study ofBiofuels

The Secretary of the Treasuryis required to study the effectsof increased biofuel use.Study elements include theeffects on: fuel prices; land

prices; land use; environment;agricultural commodities;taxpayers; and refiningcapacity. [Sec. 14002]

No comparable requirementfor the Secretary of theTreasury.

No current provision. Both bills would requirerelated studies by DOE orEPA. See Sec. 9314 ofH.R. 3221 and Sec.162 ofH.R. 6 (above).


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H.R. 6 (Senate Version)

Renewable Fuel Standard No comparable provision. Amends the renewable fuelstandard (RFS) established inP.L. 109-58 to include allmotor fuel, as well as heatingoil. Expands the mandate to

13.2 billion gallons in 2012and 36 billion gallons in 2022.Starting in 2016, requires anincreasing amount of the abovemandate to be met usingadvanced biofuels, definedas biofuels derived fromfeedstocks other than cornstarch. The bill would require

3 billion gallons of advancedbiofuel in 2016, increasing to21 billion gallons in 2022.Renewable fuels produced infacilities that commenceoperation after enactment mustachieve at least a 20%reduction in lifecyclegreenhouse gas emissionsrelative to gasoline. [Sec. 111]

The Energy Policy Act of 2005established an RFS whichrequires the use of anincreasing amount ofrenewable fuels in gasoline.

The mandate increases from4.0 billion gallons in 2006 to7.5 billion gallons in 2012.Starting in 2013, theproportion of renewable fuel togasoline must equal or exceedthe proportion in 2012.Starting in 2013, of the amountmandated above, at least 250

million gallons must be fuelderived from cellulosicmaterial.[P.L. 109-58, Sec. 1501]


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Production of RenewableFuel Using Renewable

Energy

No comparable provision. Under Sec. 111of H.R. 6, agallon of advanced biofuel isconsidered equal to a gallon ofconventional biofuel. Thissection grants the President theauthority to give additionalcredits under the program to

biofuels produced at facilitiesthat use biomass to displacefossil energy. [Sec. 112]

Under the existing RFS,cellulosic biofuels are eligiblefor additional credits under themandate. A gallon ofcellulosic biofuel is consideredequal to 2.5 gallons of ethanol.For this section, cellulosic

biofuels includes bothbiofuels produced fromcellulose and biofuelsproduced from sugars orstarches if biomass is used todisplace fossil energy in therefining of the fuel. [P.L. 109-58, Sec. 1501]

Sense of CongressRelating to the Use ofRenewable Resources toGenerate Energy

No comparable provision. Expresses the Sense of theCongress that renewableresources from agriculture andforestry should provide at least25% of all U.S. energy needsby 2025. [Sec. 113]


Grants for Infrastructure

for Transportation of

Biomass to LocalBiorefineries

No comparable provision. Would require the Secretary ofEnergy to establish grants to

local governments and otherentities (as determined by theSecretary) to promote thedevelopment of infrastructureto produce, separate, process,and transport biomass tobiorefineries. [Sec. 126]



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Alternative FuelDatabase and Materials

No comparable provision. Would require the Secretary ofEnergy and the NationalInstitute of Standards andTechnology to establish: 1) apublic database describing thephysical properties of differentalternative fuels; and 2)

standard reference materialsfor different alternative fuels.[Sec. 128]


Fuel Tank Labeling

Requirement

No comparable provision. Beginning in model year 2010,would require that the fuel tankcap of an alternative fuelvehicle be clearly labeled assuch. [Sec. 129]


Biodiesel LabelingStandards

No comparable provision. Requires the President topromulgate rules for theuniform labeling of biodieselblends that meet ASTMstandards. [Sec. 130(b)]


Transitional Assistance

for Farmers who Plant

Dedicated Energy Cropsfor a Local CellulosicRefinery

No comparable provision. Requires the Secretary ofAgriculture to provide

transitional assistancepayments to agriculturalproducers in the first year theyproduce eligible cellulosicenergy crops. $4 million isauthorized annually forFY2008-FY2012. [Sec. 131]



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R&D in Support of Low-Carbon Fuels

No comparable provision. Establishes a program of R&Dgrants for research on lowcarbon fuels, includingcellulosic biofuels and woodybiomass for fuels andelectricity. A total of $275million is authorized for

FY2009-FY2013. [Sec. 132]


Study of Advanced

Biofuels Technologies

No comparable provision. Requires the Secretary ofEnergy to contract with theNational Academy of Sciencesto study technologies for theproduction, transportation, anddistribution of advancedbiofuels. [Sec. 141]

No current provision. Advanced biofuels arebiofuels produced fromfeedstocks other than cornstarch. (See Sec. 111 ofH.R. 6 above.)

Study of Incentives for

Renewable Fuels

No comparable provision. Requires the President to studythe renewable fuels industryand markets to determineproduction costs, factorsaffecting market prices, andfinancial incentives necessaryto enhance the U.S. biofuelsindustry. [Sec. 147]


Study of Effects ofEthanol-Blended

Gasoline on Off-RoadVehicles

No comparable provision. Requires the Secretary ofEnergy to study the effects ofethanol-blended gasoline onoff-road vehicles andrecreational boats. [Sec. 149]



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Grants for Production ofAdvanced Biofuels

No comparable provision. Requires the Secretary ofEnergy to establish a grantprogram for the production ofadvanced biofuels that have atleast a 50% reduction inlifecycle greenhouse gasemissions relative to current

fuels. [Sec. 161]

No current provision. Advanced biofuels arebiofuels produced fromfeedstocks other than cornstarch. (See Sec. 111 ofH.R. 6.)

Integrated Consideration

of Water Quality inDeterminations on Fuels

and Fuel Additives

No comparable provision. Would expand EPAs authorityto control engines, vehicles,fuels, and fuel additives underSec. 211(c) of the Clean AirAct to include effects on waterpollution. [Sec. 163]

Section 211(c) of the Clean AirAct allows the EPAAdministrator to control orprohibit the production and/orsale of any engine, vehicle,fuel, or fuel additive thatcauses or contributes to air

pollution that may bereasonably anticipated toendanger the public health orwelfare. [42 U.S.C. 7545(c)]

Anti-Backsliding No comparable provision. Requires the EPAAdministrator to study thepotential adverse effects to airquality from the expanded RFS

(see Renewable FuelStandard - H.R. 6, Sec. 111),and to promulgate regulationsto mitigate those effects. [Sec.164]



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Alternative Fuel VehicleAction Plan

No comparable provision. Requires the Secretary ofTransportation to develop andimplement an action plan sothat alternative fuel vehicles(including E85 vehicles)represent at least 50% of newvehicle sales by 2015. [Sec.

520]


agriculture law: rl34136

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