Text: H.R.3906 — 101st Congress (1989-1990)All Information (Except Text)

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HR 3906 IH
101st CONGRESS
2d Session
 H. R. 3906
To extend and modify tax incentives for ethanol, to establish minimum oxygen
content of motor fuels in carbon monoxide nonattainment areas, to require
a study of the environmental impacts of aromatic compounds in gasoline and
the benefits of using ethanol in motor fuels, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 29, 1990
Mr. DURBIN (for himself, Mr. MADIGAN, Mr. DORGAN of North Dakota, Mr. LEACH of
Iowa, Mr. SKELTON, Mr. MICHEL, Mr. NAGLE, Mr. JONTZ, Mr. GRANDY, Mr. JOHNSON
of South Dakota, Mr. PENNY, Mrs. SMITH of Nebraska, Mr. EVANS, Mr. BRUCE,
Mr. JONES of North Carolina, and Mr. LIGHTFOOT) introduced the following
bill; which was referred jointly to the Committees on Ways and Means and
Energy and Commerce
A BILL
To extend and modify tax incentives for ethanol, to establish minimum oxygen
content of motor fuels in carbon monoxide nonattainment areas, to require
a study of the environmental impacts of aromatic compounds in gasoline and
the benefits of using ethanol in motor fuels, 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 `Energy and Environmental Security Act of 1990'.
TITLE I--EXTENSION AND MODIFICATION OF TAX INCENTIVES FOR ETHANOL
SEC. 101. EXTENSION OF EXCISE TAX RATE REDUCTIONS FOR ALCOHOL FUEL MIXTURES.
  (a) GASOLINE- Paragraph (4) of section 4081(c) of the Internal Revenue
  Code of 1986 is amended by striking `1993' and inserting `2002'.
  (b) DIESEL AND AVIATION FUEL- Subsections (c)(3) and (d)(3) of section
  4091 of such Code are each amended by striking `1993' and inserting `2002'.
  (c) OTHER FUELS- Subsections (b)(2)(C) and (k)(3) of section 4041 of such
  Code are each amended by striking `1993' and inserting `2002'.
  (d) CONFORMING AMENDMENT- Paragraph (3) of section 6427(f) of such Code
  is amended by striking `1993' and inserting `2002'.
SEC. 102. STUDY OF OPTIONS FOR REIMBURSING THE HIGHWAY TRUST FUND FOR REVENUE
COST OF RATE REDUCTIONS FOR ALCOHOL FUEL MIXTURES.
  (a) STUDY- The Comptroller General of the United States shall conduct a
  study of options for reimbursing the Highway Trust Fund for the reduction
  in its receipts by reason of section 4081(c), section 4091(c), subsections
  (b)(2) and (k) of section 4041, and section 6427(f) of the Internal Revenue
  Code of 1986.
  (b) REPORT- The report of the study required by subsection (a) shall be
  submitted, not later than 1 year after the date of the enactment of this
  Act, to the Committee on Ways and Means of the House of Representatives
  and the Committee on Finance of the Senate.
SEC. 103. EXTENSION OF ALCOHOL FUELS CREDIT.
  Subsection (e) of section 40 of the Internal Revenue Code of 1986 (relating
  to credit for alcohol used as fuel) is amended--
  (1) by striking `1992' and inserting `2002', and
  (2) by striking `1994' and inserting `2004'.
SEC. 104. APPLICATION OF ALCOHOL FUELS CREDIT TO ETBE.
  (a) IN GENERAL- Subparagraph (A) of section 40(b)(2) of the Internal Revenue
  Code of 1986 (relating to credit for alcohol used as fuel) is amended--
  (1) by striking `or' at the end of clause (i),
  (2) by striking the period at the end of clause (ii) and inserting `,
  or', and
  (3) by adding at the end thereof the following new clause:
  `(iii) is used to produce ethyl tertiary butyl ether (ETBE).'
  (b) ETBE NOT CONSIDERED AN ALCOHOL- Subparagraph (A) of section 40(d)(1)
  of such Code is amended--
  (1) by striking `or' at the end of clause (i),
  (2) by striking the period at the end of clause (ii) and inserting `,
  or', and
  (3) by adding at the end thereof the following new clause:
  `(iii) ethyl tertiary butyl ether (ETBE).'
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years beginning after December 31, 1989.
SEC. 105. ETBE EXTENDED SAME TARIFF TREATMENT AS ETHANOL.
  (a) IN GENERAL- The article description in heading 9901.00.50 of the
  Harmonized Tariff Schedule of the United States is amended to read as
  follows: `Ethyl alcohol (provided for in subheadings 2207.10.60 and 2207.20)
  or any mixture containing such ethyl alcohol (provided for in heading 2710
  or 3823) or any mixture or compound derived from the reaction of ethyl
  alcohol and isobutylene if such ethyl alcohol or mixture or compound is
  to be used as a fuel or in producing a mixture of gasoline and alcohol,
  a mixture of a special fuel and alcohol, or any other mixture to be used
  as fuel (including motor fuel provided for in subheading 2710.00.15)
  or is suitable for any such uses.'
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with
  respect to articles entered, or withdrawn from warehouse for consumption,
  on or after the 15th day after the date of the enactment of this Act.
SEC. 106. EXTENTION OF EFFECTIVE PERIOD OF TEMPORARY ADDITIONAL DUTY ON
ETHANOL.
  (a) EXTENSION- Heading 9901.00.50 of the Harmonized Tariff Schedule of the
  United States is further amended by striking out `12/31/92' and inserting
  `12/31/02'.
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with
  respect to articles entered, or withdrawn from warehouse for consumption,
  on or after the 15th day after the date of the enactment of this Act.
TITLE II--OXGENATED FUELS AND AROMATIC COMPOUNDS
SEC. 201. OXYGENATED FUELS.
  Section 211 of the Clean Air Act is amended by adding the following new
  subsection to the end thereof:
  `(h)(1) Except as provided in paragraph (2) and effective October 1, 1991,
  no person shall, during the period from October 1 to March 31 each year,
  sell, offer for sale, or introduce into commerce in any area classified
  as nonattainment for carbon monoxide any gasoline fuel for use in a motor
  vehicle unless the oxygen content of such fuel is 3.1 percent or greater.
  `(2) The Administrator shall, not later than nine months after the date of
  enactment of this subsection, promulgate guidelines allowing the exchange of
  marketable oxygen credits between sellers of fuels with an oxygen content
  higher than that required by paragraph (1) and other sellers of fuels to
  offset the sale or use of fuels with a lower content than required. Such
  exchanges shall not be permitted between sellers located in different
  nonattainment areas, and the average oxygen content of fuels sold in any area
  that is nonattainment for carbon monoxide shall be 3.1 percent or greater.
  `(3) The Administrator may waive, in whole or in part, the requirements
  of this subsection in any area upon a demonstration by the State to the
  satisfaction of the Administrator that the use of oxygenated fuels would
  prevent or interfere with the attainment by such area of a national
  primary ambient air quality standard (or a State or local ambient air
  quality standard) for any air pollutant other than carbon monoxide.
  `(4) Any person selling oxygenated fuel at retail pursuant to this subsection
  shall be required under regulations promulgated by the Administrator to
  label the fuel dispensing system with a notice that the fuel is oxygenated
  and will reduce carbon monoxide emissions from motor vehicles.'
SEC. 202. AROMATIC COMPOUNDS IN GASOLINE.
  (a) COMPREHENSIVE ENVIRONMENTAL PROFILES- The Administrator of the
  Environmental Protection Agency shall develop comprehensive environmental
  profiles for each of the various aromatic compounds in gasoline, including
  an assessment of the health and environmental impacts of such compounds
  and an analysis of the health and environmental benefits of replacing such
  compounds with ethanol or ethyl tertiary butyl ether (ETBE).
  (b) REPORT TO CONGRESS- The Administrator of the Environmental Protection
  Agency shall, by March 31, 1991, submit to the Congress a report containing
  the completed environmental profiles developed under subsection (a).
  (c) ADMINISTRATOR ACTION- Before October 1, 1991, the Administrator of
  the Environmental Protection Agency shall take such action as is necessary
  to limit the use of aromatic compounds in gasoline in accordance with the
  findings made under subsection (a).
TITLE III--DEVELOPMENT AND USE OF ETHANOL
SEC. 301. PRIORITY FUNDING.
  The Secretary of Energy shall give priority to funding ethanol development
  projects that have high potential for immediate benefits, such as projects
  on ways to reduce the cost of converting grain to ethanol.
SEC. 302. PROGRAM FOR ETHANOL DEVELOPMENT AND USE.
  The Secretary of Energy shall establish a program to promote the development
  and use of ethanol in motor fuel. Such program shall include efforts to--
  (1) inform the public of the energy security, environmental, and agricultural
  benefits of increasing the use of ethanol in motor fuel; and
  (2) encourage the development of efficient facilities for the production
  of ethanol from domestic agricultural commodities.
The Secretary of Energy shall annually submit to the Congress a report on
the operation of this program, along with recommendations for legislation
to strengthen the program.