[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7155 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7155
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 HOUSE OF REPRESENTATIVES
March 18, 2022
Mr. Feenstra (for himself, Ms. Craig, Mrs. Bustos, and Mrs. Hinson)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on Energy and
Commerce, and Agriculture, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
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.''.
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