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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. 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]