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Code · BILL · 113th Congress · S. 1563 (Introduced in Senate) — To provide for the expansion of the biofuels market. · Sec. 4

Sec. 4. Blender pump promotion

975 words·~4 min read·/bill/113/s/1563/is/section-4

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In this subsection: The term blender pump means an automotive fuel dispensing pump capable of dispensing at least 3 different blends of gasoline and ethanol, as selected by the pump operator, including blends ranging from 0 percent ethanol to 85 percent denatured ethanol, as determined by the Secretary. The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol. The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol.
The term major fuel distributor means any person that owns a refinery or directly markets the output of a refinery. The term major fuel distributor does not include any person that directly markets through less than 50 retail fueling stations. The term Secretary means the Secretary of Energy. The Secretary shall make grants under this subsection to eligible facilities (as determined by the Secretary) to pay the Federal share of— installing blender pump fuel infrastructure, including infrastructure necessary for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks; and providing subgrants to direct retailers of ethanol fuel blends (including E–85 fuel) for the purpose of installing fuel infrastructure for the direct retail sale of ethanol fuel blends (including E–85 fuel), including blender pumps and storage tanks.
A major fuel distributor shall not be eligible for a grant or subgrant under this subsection. The Federal share of the cost of a project carried out under this subsection shall be up to 50 percent of the total cost of the project. If an eligible facility or retailer that receives a grant or subgrant under this subsection does not offer ethanol fuel blends for sale for at least 2 years during the 4-year period beginning on the date of installation of the blender pump, the eligible facility or retailer shall be required to repay to the Secretary an amount determined to be appropriate by the Secretary, but not more than the amount of the grant provided to the eligible facility or retailer under this subsection.
There are authorized to be appropriated to the Secretary to carry out this subsection, to remain available until expended— $50,000,000 for fiscal year 2014; $100,000,000 for fiscal year 2015; $200,000,000 for fiscal year 2016; $300,000,000 for fiscal year 2017; and $350,000,000 for fiscal year 2018. Section 211(o) of the Clean Air Act ( 42 U.S.C. 7545(o) ) is amended by adding at the end the following: In this paragraph: The term E–85 fuel means a blend of gasoline approximately 85 percent of the content of which is ethanol.
The term ethanol fuel blend means a blend of gasoline and ethanol, with a minimum of 0 percent and maximum of 85 percent of the content of which is denatured ethanol. The term major fuel distributor means any person that owns a refinery or directly markets the output of a refinery. The term major fuel distributor does not include any person that directly markets through less than 50 retail fueling stations. The term Secretary means the Secretary of Energy, acting in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Agriculture.
The Secretary shall promulgate regulations to ensure that each major fuel distributor that sells or introduces gasoline into commerce in the United States through majority-owned stations or branded stations installs or otherwise makes available one or more blender pumps that dispense E–85 fuel and ethanol fuel blends (including any other equipment necessary, such as tanks, to ensure that the pumps function properly) for a period of not less than 5 years at not less than the applicable percentage of the majority-owned stations and the branded stations of the major fuel distributor specified in subparagraph (C).
For the purpose of subparagraph (B), the applicable percentage of the majority-owned stations and the branded stations shall be determined in accordance with the following table: Applicable percentage of majority-owned stations and branded stations Calendar year: Percent: 2016 10 2018 20 2020 35 2022 and each calendar year thereafter 50. Subject to clause (ii), in promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph installs or otherwise makes available one or more blender pumps that dispense E–85 fuel and ethanol fuel blends at not less than a minimum percentage (specified in the regulations) of the majority-owned stations and the branded stations of the major fuel distributors in each State.
In specifying the minimum percentage under clause (i), the Secretary shall ensure that each major fuel distributor installs or otherwise makes available one or more blender pumps described in that clause in each State in which the major fuel distributor operates. In promulgating regulations under subparagraph (B), the Secretary shall ensure that each major fuel distributor described in that subparagraph assumes full financial responsibility for the costs of installing or otherwise making available the blender pumps described in that subparagraph and any other equipment necessary (including tanks) to ensure that the pumps function properly.
If the percentage of the majority-owned stations and the branded stations of a major fuel distributor at which the major fuel distributor installs blender pumps in a particular calendar year exceeds the percentage required under subparagraph (C), the major fuel distributor shall earn credits under this paragraph, which may be applied to any of the 3 consecutive calendar years immediately after the calendar year for which the credits are earned. Subject to clause (iii), a major fuel distributor that has earned credits under clause
(i)may sell the credits to another major fuel distributor to enable the purchaser to meet the requirement under subparagraph (C). A major fuel distributor may not use credits purchased under clause
(ii)to fulfill the geographic distribution requirement in subparagraph (D). .
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Sec. 4
Blender pump promotion
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