text: SECTION 1. FINDINGS.
  
      The Congress finds as follows:
              (1) The over reliance of the United States on imported 
          petroleum creates a major strategic vulnerability for the 
          Nation, with nearly half of the energy supply of the United 
          States dependent on foreign sources.
              (2) From the economically damaging Arab oil embargoes of 
          1973-74 and 1979 to the recession precipitated by rising oil 
          prices which began in 1999, to the stock market's instability 
          in early 2005 due to the cost of imported oil at near record 
          highs of $55 per barrel, the economic stability of the United 
          States has too often been shaken by economic forces outside its 
          borders.
              (3) Increasing fuel prices have been a particular hardship 
          on small, independent businesses particularly truckers and 
          farmers, who have no choice but to pay ever-increasing fuel 
          bills while absorbing these higher costs in today's economic 
          environment.
              (4) This Act would help shift America's dependence away 
          from foreign petroleum as an energy source toward alternative, 
          renewable, domestic agricultural sources. Its aim is to convert 
          the current petroleum trade deficit to a trade balance by 
          replacing foreign sources of supply with steady increases of 
          biobased fuels through domestic production.
              (5) Today, there are nearly 140,000,000 cars and 85,000,000 
          trucks on our highways. Of this amount, approximately 3,300,000 
          cars and trucks already on our highways will run on 85 percent 
          ethanol (E-85), and this number is increasing. For the 2005 
          model year, there are 20 different models of vehicles capable 
          of running on E-85. Yet given this market, the alternative fuel 
          is used less than 1 percent of the time given that of the more 
          than 187,000 retail locations selling motor fuel in the United 
          States, only 400 stations across 38 States sell E-85.
              (6) Biodiesel production is also dramatically increasing, 
          going from 5,000,000 gallons in 2001 to nearly 25,000,000 
          gallons in 2003. Daimler-Chrysler has also announced its 
          intentions to initially fuel the Diesel Jeep Liberty with a 5 
          percent biodiesel blend, the first time a vehicle has been 
          explicitly fueled with an alternative fuel as it rolls off the 
          production line.
              (7) Currently the United States annually consumes about 
          7,171,885,000 barrels of petroleum. (164,000,000,000 gallons of 
          vehicle fuels and 5,600,00,000 gallons of heating oil.) In 
          2002, 62 percent of these fuels were imported, part of a total 
          $358,200,000,000 trade deficit with the rest of the world. 
          Since 1983, the United States importation of petroleum and its 
          derivatives has more than tripled, rising from 1,215,225,000 
          barrels in 1983 to 4,476,501,000 barrels in 2003.
              (8) Further Strategic Petroleum Reserve policy should 
          encourage domestic production to the greatest extent possible. 
          Currently, the Strategic Petroleum Reserve holds 670,700,000 
          barrels (out of a potential 727,000,000 barrels), sufficient to 
          cushion the United States from wild price swings for a period 
          of 53 days. None of the fuel in this Reserve is bio-based. In 
          fact, 92.2 percent of the Strategic Petroleum Reserve has been 
          purchased from foreign sources--41.9 percent from Mexico, 24 
          percent from the United Kingdom, and over 20 percent from OPEC 
          nations.
              (9) Strategic Petroleum Reserve policy also should 
          encourage the development of alternatives to the Nation's 
          reliance on petroleum such as biomass fuels.
              (10) As a first step in diversification, the Strategic 
          Petroleum Reserve should exchange 2,100,000 barrels from our 
          current reserves for 32,000,000 gallons of ethanol and 
          biodiesel, which could comprise less than 2 percent of the 
          United States market, but yield a doubling of ethanol products.
              (11) The benefits of biofuels are as follows:
                      (A) Energy security.--
                              (i) Biofuels hold potential to address our 
                          dependence on foreign energy sources 
                          immediately. With agricultural surpluses, 
                          commodity prices have reached record lows; 
                          concurrently world petroleum prices have 
                          reached record highs and are expected to 
                          continue rising as global petroleum reserves 
                          are drawn down over the next 25 years. It also 
                          is clear that economic conditions are favorable 
                          to utilize domestic surpluses of biobased oils 
                          to enhance the Nation's energy security.
                              (ii) In the short term, biofuels can supply 
                          at least one-fifth of current United States 
                          fuel demand using existing technologies and 
                          capabilities. Additional plant research, newer 
                          processing and distribution technologies, and 
                          placing additional acres under cultivation can 
                          yield even greater results.
                              (iii) Biofuels can be used with existing 
                          petroleum infrastructure and conventional 
                          equipment.
                      (B) Economic security.--
                              (i) Continued dependence upon imported 
                          sources of oil means our Nation is 
                          strategically vulnerable to disruptions in our 
                          oil supply.
                              (ii) Renewable biofuels domestically 
                          produced directly replace imported oil.
                              (iii) Increased use of renewable biofuels 
                          would result in significant economic benefits 
                          to rural and urban areas and also reduce the 
                          trade deficit.
                              (iv) According to the Department of 
                          Agriculture, a sustained annual market of 
                          100,000,000 gallons of biodiesel alone would 
                          result in $170,000,000 in increased income to 
                          farmers.
                              (v) Farmer-owned biofuels production has 
                          already resulted in improved income for 
                          farmers, as evidenced by the experience with 
                          State-supported rural development efforts in 
                          Minnesota where prices to corn producers have 
                          been increased by $1.00 per bushel. With the 
                          Department of Agriculture having forecast 
                          prices of $2.10 per bushel of corn for the 
                          2004-2005 marketing year, the portion of the 
                          corn crop that goes for ethanol has a farm 
                          value of $2,100,000,000.
                      (C) Environmental security.--
                              (i) The use of grain-based ethanol reduces 
                          greenhouse gas emissions from 35 to 46 percent 
                          compared with conventional gasoline. Biomass 
                          ethanol provides an even greater reduction.
                              (ii) The American Lung Association of 
                          Metropolitan Chicago credits ethanol-blended 
                          reformulated gasoline with reducing smog-
                          forming emissions by 25 percent since 1990.
                              (iii) Ethanol reduces tailpipe carbon 
                          monoxide emissions by as much as 30 percent.
                              (iv) Ethanol reduces exhaust volatile 
                          organic compounds emissions by 12 percent.
                              (v) Ethanol reduces toxic emissions by 30 
                          percent.
                              (vi) Ethanol reduces particulate emissions, 
                          especially fine-particulates that pose a health 
                          threat to children, senior citizens, and those 
                          with respiratory ailments.
                              (vii) Biodiesel contains no sulfur or 
                          aromatics associated with air pollution.
                              (viii) The use of biodiesel provides a 78.5 
                          percent reduction in CO&lt;INF&gt;2&lt;/INF&gt; emissions 
                          compared to petroleum diesel and when burned in 
                          a conventional engine provides a substantial 
                          reduction of unburned hydrocarbons, carbon 
                          monoxide, and particulate matter.
  
  SEC. 2. ETHANOL AND BIODIESEL FUEL REQUIREMENTS.
  
      Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended as 
  follows:
              (1) By redesignating subsection (o) as subsection (q).
              (2) By inserting after subsection (n) the following:
      ``(o) Renewable Fuel Program--
              ``(1) Definitions.--In this section:
                      ``(A) Ethanol.--The term `ethanol' means ethanol 
                  derived from any lignocellulosic or hemicellulosic 
                  matter that is available on a renewable or recurring 
                  basis, including dedicated energy crops and trees, wood 
                  and wood residues, plants, grasses, agricultural 
                  residues, and fibers. The term includes ethanol derived 
                  from animal wastes, including poultry fats and poultry 
                  wastes, and other waste materials, or municipal solid 
                  waste.
                      ``(B) Biodiesel.--The term `biodiesel'has the same 
                  meaning as when used in section 312(f) of the Energy 
                  Policy Act of 1992 (42 U.S.C. 13220(f)).
              ``(2) Renewable fuel program.--Not later than 1 year after 
          the enactment of this subsection, the Administrator shall 
          promulgate regulations ensuring that, after December 31, 2010, 
          all gasoline or diesel motor vehicle fuel sold or dispensed to 
          consumers in the contiguous United States, on an annual average 
          basis, contains not less than 10 percent ethanol, in the case 
          of gasoline, and not less than 5 percent biodiesel, in the case 
          of diesel fuel.''.
target: Amends the Clean Air Act to require the Administrator of the Environmental Protection Agency (EPA) to promulgate regulations ensuring that after December 31, 2010, all gasoline or diesel motor vehicle fuel sold or dispensed in the contiguous United States contains not less than ten percent ethanol (in the case of gasoline) and not less than five percent biodiesel (in the case of diesel fuel).
feat_title: To amend the Clean Air Act to require that, after the year 2010, all gasoline sold in the United States for motor vehicles contain not less than 10 percent ethanol and that all diesel fuel sold in the United States for motor vehicles contain not less than 5 percent biodiesel, and for other purposes.