

Order Code RL34136
Biofuels Provisions in H.R. 3221 and H.R. 6:
A Side-by-Side Comparison
August 21, 2007
Brent D. Yacobucci
Specialist in Environmental and Energy Policy
Resources, Science, and Industry Division
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 provisions
in 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, and
Consumer Protection Act and the Renewable Energy and Energy Conservation Tax
Act 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 Energy
Efficiency Act of 2007) on June 21, 2007. Both bills cover a wide range of energy
topics 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) established
in 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, expanded
biofuel use, market and environmental impacts of increased biofuel
use, 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].
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 with
H.R. 3221 and H.R. 6 (Senate Version) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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 to
reduce air pollutant and greenhouse gas emissions, there is ongoing congressional
interest in promoting greater use of alternatives to petroleum fuels. Biofuels —
transportation fuels produced from plants and other organic materials — have
attracted particular interest. Ethanol and biodiesel, the two most widely used biofuels,
receive significant federal support in the form of tax incentives, loan and grant
programs, and regulatory programs.1
The Energy Policy Act of 2005 (P.L. 109-58) established a renewable fuel
standard (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 this
requirement will be met using corn-based ethanol.2 About 4.0 billion gallons of corn
ethanol 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, with
another 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 concerns
that 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 continued
government support, and that current corn demand for ethanol is putting a strain on
corn and other grain markets, leading to increases in other commodity prices, such
as livestock feed, which then leads to higher dairy and meat prices.3 Critics also
argue that the environmental costs of corn-based ethanol may outweigh the benefits.
1 For more information on federal biofuels incentives, see CRS Report RL33572, Biofuels
Incentives: A Summary of Federal Programs, by Brent D. Yacobucci.
2 For more information on ethanol, see CRS Report RL33290, Fuel Ethanol: Background
and Public Policy Issues, by Brent D. Yacobucci.
3 For more information on the issues surrounding rapid ethanol expansion, see CRS Report
RL33928, Ethanol and Biofuels: Agriculture, Infrastructure, and Market Constraints
Related to Expanded Production, by Brent D. Yacobucci and Randy Schnepf.
CRS-2
Because of concerns over corn-based ethanol, as well as interest in diversifying
energy supply, there is growing interest in developing biofuels that rely on other
sources of biomass, including agricultural wastes, municipal solid waste, and
dedicated energy crops such as perennial grasses, fast-growing trees, and algae. This
interest has led to proposals to support and/or mandate biofuels produced from
feedstocks other than corn starch through explicit requirements, R&D funding, and/or
tax incentives.4 Non-corn biofuels could include fuels produced from cellulosic
material (such as perennial grasses), ethanol produced from sugarcane or beets, and
biodiesel 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 provisions
in 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, and
Consumer Protection Act and the Renewable Energy and Energy Conservation Tax
Act 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 Energy
Efficiency Act of 2007) on June 21, 2007.6 Both bills cover a wide range of energy
topics including biofuels, electricity generation, energy efficiency, carbon capture and
storage, 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 2007
Farm 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 of
H.R. 2419. For more information on these Farm Bill provisions, see CRS Report
RL34130, Renewable Energy Policy in the 2007 Farm Bill.
Table 1 contains a section-by-section comparison of the biofuels provisions in
H.R. 3221 and H.R. 6 with current law. The table is organized in the same order as
the House bill, with non-comparable Senate bill sections shown at the end. Key
provisions of the bills include:
! a major expansion of the RFS established in the Energy Policy Act
of 2005 [Senate bill];
4 This would include using other parts of the corn plant, including the husks and the stalks,
which are high in cellulose.
5 For more information on biodiesel, see CRS Report RL32712, Agriculture-Based
Renewable Energy Production, by Randy Schnepf.
6 The House approved its version of H.R. 6 on January 18, 2007. However, this bill is a less
comprehensive bill than H.R. 3221 or the Senate version of H.R. 6. Presumably, H.R. 3221
has superseded the House version of H.R. 6.
CRS-3
! 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, expanded
biofuel use, market and environmental impacts of increased biofuel
use, 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].
CRS-4
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 Biorefinery
Directs the Secretary of
Similar provision.
No current provision.
Information Center
Energy to establish a
[Sec. 127]
technology transfer center to
provide information on
biofuels and biorefineries.
[Sec. 4402]
Biofuels Infrastructure
Directs the Secretary of
Directs the Secretary of
No current provision.
In addition, sec. 9301 of
Energy to conduct an R&D
Energy to provide grants for
H.R. 3221 (below) would
program on the effects of
pilot programs to expand
provide grants for the
biofuels on existing
infrastructure for
installation of renewable
transportation fuel distribution
ethanol/gasoline blends of
fuel infrastructure at retail
systems. [Sec. 4403]
between 11% and 84%
stations.
ethanol, and renewable
fuel/diesel fuel blends of at
least 10% renewable diesel.
$200 million is authorized to
be available until expended.
[Sec. 121]
Biodiesel Report
Requires the Secretary of
Similar provision, but would
No current provision.
Currently, biodiesel
Energy to report to Congress
require a study of the
represents less than 1% of
on the R&D challenges to
challenges of expanding
total diesel consumption.
expanding biodiesel use to
biodiesel use to 5% of total
2.5% of total diesel fuel use by
diesel fuel use. [Sec. 130(a)]
volume. [Sec. 4404]
CRS-5
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Biogas
Requires the Secretary of
No comparable provision.
No current provision.
Energy to report to Congress
on the R&D challenges to
expanding biogas and
biogas/natural gas blends to
5% of fuel use. [Sec. 4405]
Bioresearch Centers for
Requires the establishment of
Similar to H.R. 3221, but
The Department of Energy
See also Sec. 4413(a) of
Systems Biology Program
at least five bioresearch centers
would require the
(DOE) is required to establish
H.R. 3221 (below), which
that focus on biofuels to be
establishment of at least 11
a program of R&D and
would expand the topics
included in the R&D program
bioresearch centers focused on
demonstration of microbial
covered by the program.
established in Sec. 977 of P.L.
biofuels. [Sec. 123]
and plant systems biology,
109-58. [Sec. 4406]
protein science, and
computational biology.
Biomedical research and
research related to humans are
not permitted as part of the
program. [Energy Policy Act
of 2005 - P.L. 109-58, Sec.
977]
Grants for Biofuel
Authorizes $25 million
Similar to H.R. 3221. [Sec.
The Secretary of Energy is
The funding authorized in
Production and R&D in
annually for FY2008-FY2010
125]
authorized $25 million
these bills would be in
Certain States
for R&D and commercial
annually for FY2006-FY2010
addition to amounts in
application of biofuel
for R&D and implementation
current law. Language
production in states with low
of renewable fuel production
substantially similar to
rates of ethanol and cellulosic
technologies in states with low
these bill sections is also
ethanol production (this could
rates of ethanol production that
in Sec. 9315 of H.R.
in effect apply to all states).
are under the federal
3221(see below).
[Sec. 4407]
reformulated gasoline (RFG)
program. [P.L. 109-58, Sec.
1511(d)]
CRS-6
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Biorefinery Energy
Amends Sec. 932 of P.L. 109-
No comparable provision.
The Secretary of Energy is
Efficiency
58 to include research on
directed to conduct research on
energy efficiency at
commercial applications of
biorefineries and on
biomass and bioenergy. [P.L.
technology to convert existing
109-58, Sec. 932]
corn-based ethanol plants to
process cellulosic materials.
[Sec. 4408]
Study of Increased
The Secretary of Energy is
Similar provision. [Sec. 142]
No current provision.
A similar provision is
Consumption of Ethanol-
directed to study the potential
contained in Sec. 9305 of
Blended Gasoline with
for using ethanol/gasoline
H.R. 3221 for a study of
Higher Levels of Ethanol
blends in the range of 10% to
increasing gasoline
40% ethanol. Currently, only
ethanol content above
up to 10% ethanol is permitted
10% (see below).
by federal regulations and
warrantied by automakers for
conventional vehicles. [Sec.
4409]
Study of Optimization of
The Secretary of Energy is
Similar provision. [Sec. 144]
No current provision.
Current FFVs are
Flexible Fueled Vehicles
directed to study whether
optimized to run on
to use E-85 Fuel
optimizing flexible fuel
gasoline, since that tends
vehicles (FFVs) to run on E85
to be their primary fuel.
would increase their fuel
efficiency. [Sec. 4410]
Study of Engine
The Secretary of Energy is
Similar provision, except that
No current provision.
Durability and
directed to study the effects of
the Secretary is required to
Performance Associated
various biodiesel/diesel blends
study only the effects on
with the Use of Biodiesel
on engine performance and
engine durability but not
durability. [Sec. 4411]
performance. [Sec. 146]
CRS-7
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Bioenergy R&D -
Amends Sec. 931 of P.L. 109-
Amends Sec. 931 of P.L. 109-
The Secretary of Energy is
Funding for related
Authorization of
58 to authorize a total of $1.2
58 to authorize a total of $775
directed to conduct R&D on
biomass research through
Appropriation
billion for FY2008-FY2010 for
million for FY2008-FY2009.
biomass, bioenergy, and
the Department of
R&D on biomass, bioenergy,
[Sec. 122]
bioproducts. A total of $525
Agriculture is contained
and bioproducts. [Sec. 4412]
million is authorized for
in Sec. 5007 of H.R. 3221.
FY2008-FY2009. [P.L. 109-
58, Sec. 931(c)]
Environmental Research
DOE is required to expand the
No comparable provision.
DOE is required to establish a
See also Sec. 4406 of H.R.
and Development
biological R&D program
program of research,
3221 (above).
established in Sec. 977 of P.L.
development, and
109-58 to include
demonstration in microbial and
environmental effects,
plant systems biology, protein
potential for greenhouse gas
science, and computational
reductions, and the potential
biology. Biomedical research
for more sustainable
and research related to humans
agriculture. [Sec. 4413(a)]
are not permitted as part of the
program. [P.L. 109-58, Sec.
977]
Lifecycle Analysis Tools
The Secretary of Energy is
Similar provision, but the
No current provision.
for Evaluating the
required to study and develop
study is required to cover only
Energy Consumption and
tools for evaluating the
greenhouse gas emissions but
Greenhouse Gas
lifecycle energy consumption
not energy consumption.
Emissions from Biofuels
and greenhouse gas emissions
[Sec. 148]
from biofuels. [Sec. 4413(b)]
Small-Scale Production
The Secretary of Energy is
No comparable provision.
No current provision.
and Use of Biofuels
required to establish a R&D
program to facilitate small-
scale production and local and
on-farm use of biofuels. [Sec.
4413(c)]
CRS-8
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Study of Optimization of
The Secretary of Energy is
No comparable provision.
No current provision.
Biogas Used in Natural
directed to study the potential
Gas Vehicles
for optimizing natural gas
vehicles to run on biogas
(methane produced from
biological feedstocks). [Sec.
4414]
Standards for Biofuels
If “appropriate private
No comparable provision.
No current provision.
Dispensers
standards” for biofuels
dispensers have not been
developed by the date of
enactment, the Secretary of
Energy is required to develop
such standards to promote
broader biofuel use. [Sec.
4415]
Algal Biomass
The Secretary is required to
No comparable provision.
Various statutes promote
report to Congress on progress
biofuels R&D, including the
toward developing algae as a
development of biofuels from
feedstock for biofuel
algae, at the Department of
production. [Sec. 4416]
Energy.
CRS-9
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
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 of
Amends definitions and
No comparable provision.
Under the 2002 Farm Bill,
Related language to H.R.
Biobased Products
procedures for determining
federal agencies are currently
3221 was passed by the
eligible products under the
required to purchase biobased
House in July as Sec.
2002 Farm Bill (P.L. 107-171)
products under certain
9002 of the 2007 Farm
program on federal
conditions. Current law
Bill (H.R. 2419).
procurement of biobased
authorizes a voluntary
products. For FY2008-
biobased labeling program.
FY2012, $2 million in annual
USDA regulations define
mandatory Commodity Credit
biobased products, identify
Corporation (CCC) funding is
biobased product categories,
authorized for product testing.
and specify the criteria for
[Sec. 5002]
qualifying those products for
preferred procurement.
Mandatory CCC funding of $1
million is authorized for each
of FY2002 through FY2007
for testing biobased products.
[P.L. 107-171, Sec. 9002]
CRS-10
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Loan Guarantees for
Extends the 2002 Farm Bill
Amends Sec. 1703 of the
Under the Energy Policy Act
Related language to H.R.
Biorefineries and Biofuel
biorefinery development
Energy Policy Act of 2005 to
of 2005, the Department of
3221 (with larger funding
Production Plants
program through FY2012 and
allow for projects that produce
Energy is directed to provide
authorizations) was
provides new loan guarantee
“advanced biofuels” defined as
loan guarantees for various
passed by the House as
authority for biorefineries,
biofuels produced from
renewable energy and low-
Sec. 9003 of the 2007
with a total of $600 million
feedstocks other than corn
emission energy projects. [P.L.
Farm Bill (H.R. 2419).
going to loans less than $100
starch (see H.R. 6, Sec. 111).
109-58, Sec. 1703]
million, and $1 billion for
[Sec. 124]
loans up to $250 million. The
The 2002 Farm Bill authorized
loan guarantee would cover
a grant program to help finance
90% of an eligible loan.
the cost of developing and
Requires that construction
constructing biorefineries and
contractors and subcontractors
biofuel production plants to
on federally assisted loan
carry out projects to
guarantee projects pay their
demonstrate the commercial
employees not less than the
viability of converting biomass
prevailing wage in the same
to fuels or chemicals.
locality under the Davis-Bacon
However, no funds have been
Act. Specifies mandatory
appropriated for the program.
CCC funding of $50 million in
[P.L. 107-171, Sec. 9003]
FY2008; $65 million in
FY2009; $75 million in
FY2010; $150 million in
FY2011; and $300 million in
FY2012. [Sec. 5003]
CRS-11
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Biodiesel Fuel Education
Extends the 2002 Farm Bill
No comparable provision.
This program awards
Identical language to H.R.
Program
Biodiesel Fuel Education
competitive grants to nonprofit
3221 was passed by the
Program through FY2012 with
organizations that educate
House as Sec. 9017 of the
mandatory funding of $2
governmental and private
2007 Farm Bill (H.R.
million for each of FY2008
entities operating vehicle
2419).
through FY2012. [Sec. 5004]
fleets, and educate the public
about the benefits of biodiesel
fuel use. Mandatory CCC
funding of $1 million annually
was authorized for FY2003
through FY2007. [P.L. 107-
171, Sec. 9004]
Energy Audit and
Extends the 2002 Farm Bill
No comparable provision.
This is a competitive grant
Identical language to H.R.
Renewable Energy
Energy Audit and Renewable
program for eligible entities to
3221 was passed by the
Development Program
Energy Development Program
carry out a program to assist
House as Sec. 9004 of the
through 2012. [Sec. 5005]
farmers, ranchers, and rural
2007 Farm Bill (H.R.
small businesses in becoming
2419).
more energy efficient and in
using renewable energy
technology and resources.
Authorized appropriations of
such sums as are necessary to
carry out the program for
FY2002 through FY2007.
[P.L. 107-171, Sec. 9005]
CRS-12
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Renewable Energy
Renames the 2002 Farm Bill
No comparable provision.
This program authorizes loans,
Related language to H.R.
Systems and Energy
program on “renewable energy
loan guarantees, and grants to
3221 (with a total of $75
Efficiency Improvements
systems and energy efficiency
farmers, ranchers, and rural
million more for FY2008-
improvements” as the “Rural
small businesses to purchase
FY2012) was passed by
Energy for America Program.”
and install renewable energy
the House as Sec. 9005 of
Raises the loan guarantee level
systems and to make energy
the 2007 Farm Bill (H.R.
from $10 million to $25
efficiency improvements.
2419).
million and caps federal
Mandatory CCC funding of
cost-share at 75%. Allows for
$23 million annually for
feasibility studies to be eligible
FY2003 through FY2007.
for the program. Increases
[P.L. 107-171, Sec. 9006]
mandatory CCC funding to
$40 million in FY2008; $60
million in FY2009; $75
million in FY2010; $100
million in FY2011; and $150
million in FY2012. [Sec. 5006]
CRS-13
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Biomass Research and
Modifies and extends the
No comparable provision.
The Biomass Research and
Related language to H.R.
Development Act of 2000
Biomass Research and
Development Act of 2000
3221 (with a total of $70
Development Program through
(reauthorized by the 2002
million more for FY2008-
FY2012. Adds mandatory
Farm Bill) provides
FY2012) was passed by
CCC funding of $25 million in
competitive funding for R&D
the House as Sec. 9006 of
FY2008; $50 million in
and demonstration projects on
the 2007 Farm Bill (H.R.
FY2009; $75 million in
biofuels and bio-based
2419).
FY2010; $100 million in
chemicals and products,
FY2011; and $100 million in
administered jointly by USDA
FY2012. Also maintains the
and DOE. Specified
existing authorization of
mandatory CCC funding of $5
appropriations of $200 million
million in FY2002 and $14
annually for FY2008-FY2015.
million annually for FY2003
[Sec. 5007]
through FY2007 to remain
available until expended. Also
authorized appropriations of
$200 million for each of
FY2006 through FY2015.
[P.L. 107-171, Sec. 9008]
CRS-14
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Adjustments to the
Renews and extends the 2002
No comparable provision.
Originally a Clinton
Related language to H.R.
Bioenergy Program
Farm Bill Bioenergy Program
Administration initiative, the
3221 (with a total of $185
through 2012 with increased
Bioenergy Program was made
million more for FY2008-
mandatory CCC funding of
statutory by the 2002 Farm
FY2012) was passed by
$175 million in FY2008; $215
Bill. The program provides
the House as Sec. 9007 of
million in FY2009; $250
CCC incentive payments to
the 2007 Farm Bill (H.R.
million in FY2010; $275
biofuels producers based on
2419).
million in FY2011; and $300
year-to-year increases in the
million in FY2012. Ethanol
quantity of biofuel produced.
produced from corn starch is
Mandatory CCC funding of
excluded. Renewable diesel
$150 annually for FY2002
produced from biomass at
through FY2006. No funding
petroleum refineries may be
was available for FY2007.
excluded, as well. Expands
[P.L. 107-171, Sec. 9010]
eligibility for combined heat
and power production using
biomass at biofuels plants and
biomass gasification as types
of bioenergy eligible for the
production incentive. [Sec.
5008]
CRS-15
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Research, Extension, and
Extends the Sun Grant
No comparable provision.
The “Sun Grant” program
Related language to H.R.
Educational Programs on
program through 2012 with
established 5 national sun
3221 was passed by the
Biobased Energy
authorized appropriations of
grant research centers based at
House as Sec. 9008 of the
Technologies and
$75 million for each of
land-grant universities and
2007 Farm Bill (H.R.
Products
FY2008 through FY2012.
each covering a different
2419).
[Sec. 5009]
region. The purpose is to
enhance coordination and
collaboration between USDA,
DOE, and land-grant
universities in the
development, distribution, and
implementation of biobased
energy technologies.
Authorized appropriations of
$25 million in FY2005, $50
million in FY2006, and $75
million annually for FY2006
through FY2010.
Energy Council of the
Directs the Secretary of
No comparable provision.
No current provision.
Identical language to H.R.
Department of
Agriculture to establish an
3221 was passed by the
Agriculture
energy council to coordinate
House as Sec. 9009 of the
the energy policy of USDA
2007 Farm Bill (H.R.
and consult with other federal
2419).
departments and agencies.
[Sec. 5010]
CRS-16
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Forest Bioenergy
Establishes a new R&D
No comparable provision.
No current provision.
Related language to H.R.
Research Program
program to promote the use of
3221 (with a total of $39
woody biomass for bioenergy
million more for FY2008-
production, including
FY2012) was passed by
feedstock issues such as yield
the House as Sec. 9019 of
and new varieties. A total of
the 2007 Farm Bill (H.R.
$36 million in mandatory CCC
2419).
funding is provided for
FY2008-FY2012. [Sec. 5011]
Feedstock Flexibility
Requires that USDA establish
No comparable provision.
No current provision.
Related language to H.R.
Program for Bioenergy
and administer (starting in
3221 was passed by the
Producers
FY2008) a sugar-for-ethanol
House as Sec. 9013 of the
program using sugar intended
2007 Farm Bill (H.R.
for food use but deemed to be
2419).
in surplus. USDA would
implement the program only in
those years when purchases are
determined to be necessary to
ensure that the sugar program
operates at no cost. Such sums
as are necessary to carry out
the program are authorized.
[Sec. 5012]
CRS-17
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
H.R. 3221, Title VIII — Transportation and Infrastructure
Capitol Complex E-85
The Architect of the Capitol is
No comparable provision.
No current provision.
Refueling Station
authorized to install an E85
tank and pumping system on or
near the Capitol Grounds Fuel
Station. [Sec. 8652]
H.R. 3221, Title IX — Energy and Commerce
Renewable Fuel
Establishes a grant program for
No comparable provision.
No current provision.
See also Sec. 4403 of H.R.
Infrastructure
the installation of refueling
3221 (above).
Development
infrastructure for E85 and B20
(20% biodiesel, 80%
conventional diesel) fuels.
Authorizes $200 million
annually for FY2008-FY2014.
“Large, vertically integrated
oil companies” are ineligible
for funding. [Sec. 9301]
Prohibition on Franchise
Amends the Petroleum
No comparable provision.
No current provision.
Agreement Restrictions
Marketing Practices Act (15
Related to Renewable
U.S.C. 2801 et seq.) to make it
Fuel Infrastructure
unlawful for a franchiser to
prohibit a franchisee from
installing E85 or B20 tanks
and pumps within the franchise
agreement. [Sec. 9302]
CRS-18
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Renewable Fuel
The Secretary of Energy is
No comparable provision.
No current provision.
Dispenser Requirements
required to report to Congress
on the market penetration of
flexible fuel vehicles and on
the feasibility of requiring fuel
retailers to install E85
infrastructure. [Sec. 9303]
Pipeline Feasibility Study
The Secretary of Energy, in
Substantially similar, except
No current provision.
consultation with the Secretary
that the Secretary of Energy
of Transportation, is required
must consult with the
to report on the feasibility of
Secretary of Agriculture, as
constructing dedicated ethanol
well. [Sec. 143]
pipelines. [Sec. 9304]
Study of Ethanol-Blended
The Secretary of Energy is
Similar provision, except that
No current provision.
A similar provision to
Gasoline with Greater
directed to study the potential
the study is to cover
Sec. 142 of H.R. 6 is
Levels of Ethanol
for increasing the ethanol
ethanol/gasoline blends
contained in Sec. 4409 of
content in gasoline above 10%.
between 10% and 40%
H.R. 3221 (see above).
[Sec. 9305]
ethanol. [Sec. 142]
Study of the Adequacy of
The Secretary of Energy, in
No comparable provision.
No current provision.
Railroad Transportation
consultation with the Secretary
of Domestically-Produced
of Transportation, is required
Renewable Fuel
to report on the adequacy of
railroad transportation of
domestically produced
renewable fuel. [Sec. 9306]
CRS-19
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Standard Specifications
If ASTM International
The President is required to
No current provision.
for Biodiesel
(originally the American
promulgate rules to ensure that
Society for Testing and
renewable diesel fuel
Materials) has not adopted a
substitutes comply with
standard for B20 within one
applicable ASTM standards.
year of enactment, the
Authorizes $3 million annually
Administrator of the
for FY2008-FY2010. [Sec.
Environmental Protection
130(c)]
Agency (EPA) is required to
do so. No new funding is
authorized. [Sec. 9307]
Grants for Cellulosic
Extends the program of
No comparable provision.
The Secretary of Energy
Ethanol Production
construction grants for
may provide grants for the
cellulosic biofuel facilities
construction of facilities to
established in P.L. 109-58
produce renewable fuels
through FY2010 and
(including ethanol) from
authorizes $500 million
cellulosic biomass, agricultural
annually for FY2009 and
byproducts, agricultural waste,
FY2010. Directs the Secretary
and municipal solid waste. A
of Energy to give priority to
total of $750 million is
projects that “promote
authorized for FY2006 through
feedstock diversity and
FY2008. [P.L. 109-58, Sec.
geographic dispersion of
1512]
production facilities.” [Sec.
9308]
CRS-20
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Consumer Education
The Secretary of
No comparable provision.
No current provision.
Campaign Relating to
Transportation is required to
Flexible-Fuel Vehicles
carry out an educational
program to inform consumers
about flexible fuel vehicles,
including which existing
vehicles may be fueled on E85.
[Sec. 9309]
Review of New
Prohibits the introduction of
No comparable provision.
Under Sec. 211(f) of the Clean
Currently, inaction by
Renewable Fuels or New
new renewable fuels or
Air Act, no new fuels or fuel
EPA allows a fuel to
Renewable Fuel Additives
renewable fuel additives unless
additives may be introduced
receive the waiver. Under
EPA explicitly grants a waiver
into commerce unless granted
H.R. 3221, no waiver
under Sec. 211(f) of the Clean
a waiver by EPA. If EPA has
would be granted without
Air Act. EPA is required to
not acted within 180 days of
explicit approval by EPA.
take final action within 270
receipt of a waiver request, the
days of receipt of the waiver
waiver is treated as granted.
request. [Sec. 9310]
[42 U.S.C. 7545(f)]
CRS-21
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Domestic Manufacturing
Expands the incentive program
No comparable provision.
The EPA Administrator is
Conversion Grant
for the domestic production of
required to establish a program
Program
hybrid and advanced diesel
to encourage the domestic
vehicle established in P.L.
production and sales of
109-58 to include flexible fuel
efficient hybrid and advanced
vehicles. Requires that
diesel vehicles. The program
priority be given to auto and
must include grants to
parts manufacturing facilities
domestic vehicle
that have “recently ceased
manufacturers to encourage
operation or will cease
production and provide
operation in the near future.”
consumer purchase incentives.
Allows coordination with
Such sums as necessary are
similar state programs. [Sec.
authorized for FY2006-
9311]
FY2015. [P.L. 109-58, Sec.
712]
Cellulosic Ethanol and
Authorizes the Secretary of
No comparable provision.
No current provision.
Biofuels Research
Energy to provide biofuels
R&D grants to 10 institutions
from land-grant colleges,
Historically Black Colleges or
Universities, tribal serving
institutions, or Hispanic
serving institutions. $50
million for FY2008 is
authorized to be appropriated,
to be available until expended.
[Sec. 9312]
CRS-22
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Federal Fleet Refueling
Requires the head of each
No comparable provision.
No current provision.
Centers
federal agency to install at
least one renewable fuel pump
at each federal fleet refueling
center by January 1, 2010.
[Sec. 9313]
Study of Impact of
The Secretary of Energy, in
The EPA Administrator is
The EPA Administrator must
See also Sec. 14002 of
Increased Renewable
consultation with the EPA
required to enter into an
publish a draft analysis of the
H.R. 3221, which would
Fuel Use
Administrator, the
agreement with the National
effects of the fuels provisions
require the Secretary of
Administrator of the Energy
Academy of Sciences to study
in P.L. 109-58 on air pollutant
the Treasury to study
Information Administration
the effects on the environment
emissions and air quality. [P.L.
related topics.
(EIA), and the Secretary of
from increased renewable fuel
109-58, Sec. 1507]
Agriculture, is required to
use. Study elements include
study and assess the impact of
the effects on air and water
The EPA Administrator is
renewable fuels on the U.S.
quality, land use patterns,
required to conduct a survey to
economy. Study elements
deforestation, greenhouse gas
determine the market share of
include the effects on energy
emissions, habitat, and the
gasoline containing ethanol
security, air and water quality,
long-term capacity of the
and other renewable fuels.
infrastructure, job creation,
United States to produce
[P.L. 109-58, Sec. 1501(c)]
and agricultural commodity
biomass feedstocks. The
markets. The Secretary must
Administrator must submit two
DOE is required to collect and
report within two years of
reports: 1) within three years
publish monthly survey data
enactment and update the
of enactment; and 2) by
on the production, blending,
report every three years
December 31, 2015. [Sec.
importing, demand, and price
thereafter. [Sec. 9314]
162]
of renewable fuels, both on a
national and regional basis.
[P.L. 109-58, Sec. 1508]
CRS-23
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Grants for Renewable
Authorizes $25 million
Similar to H.R. 3221. [Sec.
The Secretary of Energy is
For more information, see
Fuel Production R&D in
annually for FY2008-FY2010
125]
authorized to conduct R&D
Sec. 4407 of H.R. 3221
Certain States
for research, development, and
and deployment of renewable
(above).
commercial application of
fuel production technologies in
biofuel production in states
certain states. [P.L. 109-58,
with low rates of ethanol and
Sec. 1511(d)]
cellulosic ethanol production.
[Sec. 9315]
Study of Effect of Oil
The Secretary of Energy is
No comparable provision.
No current provision.
Prices
required to study the effects on
renewable fuel production of
oil priced at $40 a barrel or
more. [Sec. 9316]
Biodiesel as Alternative
Amends the Corporate
No comparable provision.
Under the Corporate Average
Expanding the definition
fuel for CAFE Purposes
Average Fuel Economy
Fuel Economy (CAFE)
of alternative fuel vehicle
(CAFE) program to allow
program, automakers may
to include B20 could
vehicles capable of operating
generate credits toward their
make all diesel passenger
on B20 to be treated as
compliance for the production
cars and light trucks
alternative fuel vehicles
and sale of alternative fuel
eligible for credits under
eligible for CAFE credits.
vehicles, as defined in law.
CAFE. Currently, some
[Sec. 9317]
Currently, B20 vehicles are not
diesel passenger vehicles
considered alternative fuel
are warrantied to run on
vehicles. [49 U.S.C. 32901 et
B5, but there seem to be
seq.]
few technical barriers to
making some or all new
diesel vehicles B20-
capable.
CRS-24
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
H.R. 3221 Tax Provisions, Title XII — Conservation
Extension and
Increases the alternative fuel
No comparable provision.
An owner of a retail fuel
Modification of
refueling property credit to
station may take a tax credit
Alternative Fuel Vehicle
50% of the cost of the
for the installation of
Refueling Property
installation, up to $50,000.
alternative fuel tanks and
Credit
Extends the credit through
pumps. The credit is equal to
December 31, 2010. [Sec.
30% of the cost of the
12002]
installation, up to $30,000.
For alternative fuels other than
hydrogen, the credit expires on
December 31, 2009. [P.L.
109-58, Sec. 1342]
Extension and
Amends the definition of
No comparable provision.
A tax credit is available for the
Also see Sec. 13011 of
Modification of Credits
“renewable diesel” under the
retail sale or use of biodiesel
H.R. 3221 below.
for Biodiesel and
renewable diesel tax credit to
and renewable diesel. The
Renewable Diesel
exclude renewable diesel and
credit is equal to $1.00 per
renewable diesel mixtures
gallon for renewable diesel or
produced through certain
biodiesel produced from virgin
processes. Extends the tax
agricultural products. The
credits through December 31,
credit expires on December 31,
2010. [Sec. 12003]
2008. [P.L. 108-357, P.L. 109-
58]
Credit for Production of
Establishes a credit of $0.50
No comparable provision.
All fuel ethanol is allowed a
Cellulosic Alcohol
per gallon for ethanol
tax credit of $0.54 per gallon,
produced from cellulosic
regardless of feedstock. Small
materials, in addition to any
producers may claim an
existing credits. [Sec. 12004]
additional credit of $0.10 per
gallon. [26 U.S.C. 40]
CRS-25
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
H.R. 3221 Tax Provisions, Title XIII — Revenue Provisions
Clarification of Eligibility
Explicitly excludes fuels
No comparable provision.
A tax credit is available for the
This provision would
for Renewable Diesel
“derived from
retail sale or use of renewable
limit tax credits for
Credit
coprocessing biomass with a
diesel. The credit is equal to
production of renewable
feedstock which is not
$1.00 per gallon of renewable
diesel at existing
biomass” from eligibility for
diesel. [P.L. 109-58]
petroleum refineries.
the renewable diesel tax credit.
[Sec. 13011]
Clarification That
Limits eligibility for the
No comparable provision.
A tax credit is available for the
Credits or Fuel are
biodiesel and renewable diesel
retail sale or use of biodiesel
Designed to Provide an
tax credits to fuels produced in
and renewable diesel blended
Incentive for United
the United States. [Sec. 13012]
into conventional diesel. The
States Production
credit does not recognize point
of origin. [P.L. 108-357, P.L.
109-58]
CRS-26
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
H.R. 3221 Tax Provisions, Title XIV — Other Provisions
Comprehensive Study of
The Secretary of the Treasury
No comparable requirement
No current provision.
Both bills would require
Biofuels
is required to study the effects
for the Secretary of the
related studies by DOE or
of increased biofuel use.
Treasury.
EPA. See Sec. 9314 of
Study elements include the
H.R. 3221 and Sec.162 of
effects on: fuel prices; land
H.R. 6 (above).
prices; land use; environment;
agricultural commodities;
taxpayers; and refining
capacity. [Sec. 14002]
CRS-27
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
H.R. 6 (Senate Version)
Renewable Fuel Standard
No comparable provision.
Amends the renewable fuel
The Energy Policy Act of 2005
standard (RFS) established in
established an RFS which
P.L. 109-58 to include all
requires the use of an
motor fuel, as well as heating
increasing amount of
oil. Expands the mandate to
renewable fuels in gasoline.
13.2 billion gallons in 2012
The mandate increases from
and 36 billion gallons in 2022.
4.0 billion gallons in 2006 to
Starting in 2016, requires an
7.5 billion gallons in 2012.
increasing amount of the above
Starting in 2013, the
mandate to be met using
proportion of renewable fuel to
“advanced biofuels,” defined
gasoline must equal or exceed
as biofuels derived from
the proportion in 2012.
feedstocks other than corn
Starting in 2013, of the amount
starch. The bill would require
mandated above, at least 250
3 billion gallons of advanced
million gallons must be fuel
biofuel in 2016, increasing to
derived from cellulosic
21 billion gallons in 2022.
material.
Renewable fuels produced in
[P.L. 109-58, Sec. 1501]
facilities that commence
operation after enactment must
achieve at least a 20%
reduction in lifecycle
greenhouse gas emissions
relative to gasoline. [Sec. 111]
CRS-28
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Production of Renewable
No comparable provision.
Under Sec. 111of H.R. 6, a
Under the existing RFS,
Fuel Using Renewable
gallon of advanced biofuel is
cellulosic biofuels are eligible
Energy
considered equal to a gallon of
for additional credits under the
conventional biofuel. This
mandate. A gallon of
section grants the President the
cellulosic biofuel is considered
authority to give additional
equal to 2.5 gallons of ethanol.
credits under the program to
For this section, “cellulosic
biofuels produced at facilities
biofuels” includes both
that use biomass to displace
biofuels produced from
fossil energy. [Sec. 112]
cellulose and biofuels
produced from sugars or
starches if biomass is used to
displace fossil energy in the
refining of the fuel. [P.L. 109-
58, Sec. 1501]
Sense of Congress
No comparable provision.
Expresses the Sense of the
No current provision.
Relating to the Use of
Congress that renewable
Renewable Resources to
resources from agriculture and
Generate Energy
forestry should provide at least
25% of all U.S. energy needs
by 2025. [Sec. 113]
Grants for Infrastructure
No comparable provision.
Would require the Secretary of
No current provision.
for Transportation of
Energy to establish grants to
Biomass to Local
local governments and other
Biorefineries
entities (as determined by the
Secretary) to promote the
development of infrastructure
to produce, separate, process,
and transport biomass to
biorefineries. [Sec. 126]
CRS-29
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Alternative Fuel
No comparable provision.
Would require the Secretary of
No current provision.
Database and Materials
Energy and the National
Institute of Standards and
Technology to establish: 1) a
public database describing the
physical properties of different
alternative fuels; and 2)
standard reference materials
for different alternative fuels.
[Sec. 128]
Fuel Tank Labeling
No comparable provision.
Beginning in model year 2010,
No current provision.
Requirement
would require that the fuel tank
cap of an alternative fuel
vehicle be clearly labeled as
such. [Sec. 129]
Biodiesel Labeling
No comparable provision.
Requires the President to
No current provision.
Standards
promulgate rules for the
uniform labeling of biodiesel
blends that meet ASTM
standards. [Sec. 130(b)]
Transitional Assistance
No comparable provision.
Requires the Secretary of
No current provision.
for Farmers who Plant
Agriculture to provide
Dedicated Energy Crops
transitional assistance
for a Local Cellulosic
payments to agricultural
Refinery
producers in the first year they
produce eligible cellulosic
energy crops. $4 million is
authorized annually for
FY2008-FY2012. [Sec. 131]
CRS-30
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
R&D in Support of Low-
No comparable provision.
Establishes a program of R&D
No current provision.
Carbon Fuels
grants for research on low
carbon fuels, including
cellulosic biofuels and woody
biomass for fuels and
electricity. A total of $275
million is authorized for
FY2009-FY2013. [Sec. 132]
Study of Advanced
No comparable provision.
Requires the Secretary of
No current provision.
Advanced biofuels are
Biofuels Technologies
Energy to contract with the
biofuels produced from
National Academy of Sciences
feedstocks other than corn
to study technologies for the
starch. (See Sec. 111 of
production, transportation, and
H.R. 6 above.)
distribution of “advanced
biofuels.” [Sec. 141]
Study of Incentives for
No comparable provision.
Requires the President to study
No current provision.
Renewable Fuels
the renewable fuels industry
and markets to determine
production costs, factors
affecting market prices, and
financial incentives necessary
to enhance the U.S. biofuels
industry. [Sec. 147]
Study of Effects of
No comparable provision.
Requires the Secretary of
No current provision.
Ethanol-Blended
Energy to study the effects of
Gasoline on Off-Road
ethanol-blended gasoline on
Vehicles
off-road vehicles and
recreational boats. [Sec. 149]
CRS-31
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Grants for Production of
No comparable provision.
Requires the Secretary of
No current provision.
Advanced biofuels are
Advanced Biofuels
Energy to establish a grant
biofuels produced from
program for the production of
feedstocks other than corn
advanced biofuels that have at
starch. (See Sec. 111 of
least a 50% reduction in
H.R. 6.)
lifecycle greenhouse gas
emissions relative to current
fuels. [Sec. 161]
Integrated Consideration
No comparable provision.
Would expand EPA’s authority
Section 211(c) of the Clean Air
of Water Quality in
to control engines, vehicles,
Act allows the EPA
Determinations on Fuels
fuels, and fuel additives under
Administrator to control or
and Fuel Additives
Sec. 211(c) of the Clean Air
prohibit the production and/or
Act to include effects on water
sale of any engine, vehicle,
pollution. [Sec. 163]
fuel, or fuel additive that
causes or contributes to air
pollution “that may be
reasonably anticipated to
endanger the public health or
welfare.” [42 U.S.C. 7545(c)]
Anti-Backsliding
No comparable provision.
Requires the EPA
No current provision.
Administrator to study the
potential adverse effects to air
quality from the expanded RFS
(see “Renewable Fuel
Standard” - H.R. 6, Sec. 111),
and to promulgate regulations
to mitigate those effects. [Sec.
164]
CRS-32
Topic
H.R. 3221
H.R. 6 (Senate Version)
Current Law
Notes
Alternative Fuel Vehicle
No comparable provision.
Requires the Secretary of
No current provision.
Action Plan
Transportation to develop and
implement an action plan so
that alternative fuel vehicles
(including E85 vehicles)
represent at least 50% of new
vehicle sales by 2015. [Sec.
520]