text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Biodiesel Promotion and Quality 
  Assurance Act of 2007''.
  
  SEC. 2. FINDINGS.
  
      Congress finds that--
              (1) the promotion of the biodiesel industry of the United 
          States is a critical component of an energy policy that reduces 
          dependence on foreign sources of petroleum;
              (2) a strong biodiesel industry will--
                      (A) significantly enhance the energy security of 
                  the United States; and
                      (B) promote economic development and job creation 
                  (particularly in rural areas of the United States), 
                  while providing environmental, health, and greenhouse 
                  gas reduction benefits;
              (3) a federally-implemented biodiesel standard will result 
          in the most efficient pricing for biodiesel across the United 
          States;
              (4) it is critical to ensure that only high quality 
          biodiesel is dispensed;
              (5) biodiesel contributes to cleaner air and lifecycle 
          reductions of greenhouse gases;
              (6) biodiesel is an environmentally safe fuel, and is the 
          most viable transportation fuel when measuring its carbon 
          footprint, life cycle and energy balance;
              (7) the United States Department of Agriculture lifecycle 
          study shows a 78.4 percent reduction in lifecycle CO2 for B100;
              (8) 1 billion gallons of biodiesel will reduce current life 
          cycle greenhouse gas emissions by 16.12 billion pounds, the 
          equivalent of removing 1.4 million passenger vehicles from 
          America's roads; and
              (9) in 2006 alone, biodiesel's contribution to reducing 
          greenhouse gas emissions was equal to removing 350,000 
          passenger vehicles from America's roads.
  
  SEC. 3. BIODIESEL FUEL STANDARD.
  
      Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
  inserting after subsection (o) the following:
      ``(p) Biodiesel Fuel.--
              ``(1) Definitions.--In this subsection:
                      ``(A) ASTM.--The term `ASTM' means the American 
                  Society of Testing and Materials.
                      ``(B) Bio-based diesel replacement.--The term `bio-
                  based diesel replacement' means any type of bio-based 
                  renewable fuel derived from plant or animal matter 
                  that--
                              ``(i) may be used as a substitute for 
                          standard diesel fuel; and
                              ``(ii) meets--
                                      ``(I) the registration requirements 
                                  for fuels and fuel additives under this 
                                  section; and
                                      ``(II) the requirements of 
                                  applicable ASTM standards.
                      ``(C) Biodiesel.--
                              ``(i) In general.--The term `biodiesel' 
                          means the monoalkyl esters of long chain fatty 
                          acids derived from plant or animal matter that 
                          meet--
                                      ``(I) the registration requirements 
                                  for fuels and fuel additives under this 
                                  section; and
                                      ``(II) the requirements of ASTM 
                                  standard D6751.
                              ``(ii) Inclusion.--For the purpose of 
                          measuring the applicable volume of the 
                          biodiesel fuel standard under paragraph (2), 
                          the term `biodiesel' includes any bio-based 
                          diesel replacement that meets--
                                      ``(I) applicable registration 
                                  requirements for fuels and fuel 
                                  additives under this section; or
                                      ``(II) applicable ASTM standards.
                      ``(D) Biodiesel blend.--The term `biodiesel blend' 
                  means a blend of biodiesel fuel that meets the 
                  requirements of ASTM standard D6751 with petroleum-
                  based diesel fuel.
              ``(2) Biodiesel fuel standard.--
                      ``(A) In general.--Not later than 1 year after the 
                  date of enactment of this subsection, the Administrator 
                  shall promulgate regulations to ensure that diesel fuel 
                  sold or introduced into commerce in the United States, 
                  on an annual average basis, contains the applicable 
                  volume of biodiesel determined in accordance with 
                  subparagraphs (B) and (C).
                      ``(B) Calendar years 2008 through 2012.--For the 
                  purpose of subparagraph (A), the applicable volume for 
                  any of calendar years 2008 through 2012 shall be 
                  determined in accordance with the following table:
                                          Applicable volume of biodiesel 
  ``Calendar year:                              (in millions of gallons):
          2008...................................................    450 
          2009...................................................    625 
          2010...................................................    800 
          2011...................................................  1,000 
          2012...................................................  1,250.
                      ``(C) Calendar year 2013 and thereafter.--For the 
                  purpose of subparagraph (A), the applicable volume for 
                  calendar year 2013 and each calendar year thereafter 
                  shall be determined by the Administrator, in 
                  consultation with the Secretary of Energy and the 
                  Secretary of Agriculture, based on a review of the 
                  implementation of the program during calendar years 
                  2008 through 2012, including a review of--
                              ``(i) the impact of the use of renewable 
                          fuels on the environment, air quality, energy 
                          security, job creation, and rural economic 
                          development; and
                              ``(ii) the expected annual rate of future 
                          production of biodiesel.
                      ``(D) Minimum percentage of biodiesel.--For the 
                  purpose of subparagraph (B), at least 80 percent of the 
                  minimum applicable volume for each of calendar years 
                  2008 through 2012 shall be biodiesel.
                      ``(E) Compliance.--The regulations promulgated 
                  under subparagraph (A) shall contain compliance 
                  provisions applicable to refineries, blenders, 
                  distributors, and importers, as appropriate, to ensure 
                  that the requirements of this paragraph are met, but 
                  shall not--
                              ``(i) restrict geographic areas in which 
                          biodiesel may be used; or
                              ``(ii) impose any per-gallon obligation for 
                          the use of biodiesel.
                      ``(F) Waivers.--
                              ``(i) Market evaluation.--The 
                          Administrator, in consultation with the 
                          Secretary of Energy and the Secretary of 
                          Agriculture, shall continually evaluate the 
                          impact of the biodiesel requirements 
                          established under this paragraph on the price 
                          of diesel fuel.
                              ``(ii) Waiver.--If the Administrator 
                          determines that there is a significant 
                          biodiesel feedstock disruption or other market 
                          circumstances that would make the price of 
                          biodiesel fuel unreasonable, the Administrator, 
                          with the concurrence of the Secretary of Energy 
                          and the Secretary of Agriculture, shall issue 
                          an order to reduce, for a 60-day period, the 
                          quantity of biodiesel required under 
                          subparagraph (A) by an appropriate quantity 
                          that does not exceed 15 percent of the 
                          applicable annual requirement for biodiesel.
                              ``(iii) Factors.--In making determinations 
                          under this subparagraph, the Administrator 
                          shall consider--
                                      ``(I) the purposes of this Act;
                                      ``(II) the differential between the 
                                  price of diesel fuel and the price of 
                                  biodiesel; and
                                      ``(III) the impact the biodiesel 
                                  mandate has on consumers.
                              ``(iv) Extensions.--If the Administrator 
                          determines that the feedstock disruption or 
                          circumstances described in clause (ii) is 
                          continuing beyond the 60-day period described 
                          in clause (ii) or this clause, the 
                          Administrator, with the concurrence of the 
                          Secretary of Energy and the Secretary of 
                          Agriculture, may issue an order to reduce, for 
                          an additional 60-day period, the quantity of 
                          biodiesel required under subparagraph (A) by an 
                          appropriate quantity that does not exceed an 
                          additional 15 percent of the applicable annual 
                          requirement for biodiesel.
                              ``(v) Restoration.--If the Administrator 
                          determines that the feedstock disruption or 
                          circumstances described in clause (ii) or (iv) 
                          has concluded and that it is practicable, the 
                          Administrator, with the concurrence of the 
                          Secretary of Energy and the Secretary of 
                          Agriculture, may issue an order to increase the 
                          quantity of biodiesel required under 
                          subparagraph (A) by an appropriate quantity to 
                          account for the gallons of biodiesel not used 
                          during the period a waiver or extension was in 
                          effect under this subparagraph.
                      ``(G) Preemption.--
                              ``(i) In general.--Except as provided in 
                          clause (ii) of this subparagraph, the 
                          provisions of this section shall supersede any 
                          law of any State or political subdivision 
                          thereof insofar as it mandates the use of 
                          biodiesel.
                              ``(ii) Construction and application.--
                          Nothing in this section shall be construed--
                                      ``(I) to supersede any biodiesel 
                                  mandate provided in any law described 
                                  in clause (i) that is enacted as of 
                                  January 1, 2008;
                                      ``(II) to prohibit a State or 
                                  political subdivision thereof from 
                                  mandating the use of biodiesel in 
                                  vehicles owned by such State or 
                                  political subdivisions thereof; or
                                      ``(III) to prohibit a State or 
                                  political subdivision thereof from 
                                  enacting financial incentives to 
                                  promote the voluntary use of 
                                  biodiesel.''.
  
  SEC. 4. BIODIESEL QUALITY.
  
      Subsection (p) of section 211 of the Clean Air Act (42 U.S.C. 7545) 
  (as added by section 3(a)) is amended by adding at the end the 
  following:
              ``(3) Biodiesel quality.--
                      ``(A) Quality regulations.--Not later than 180 days 
                  after the date of enactment of this subsection, the 
                  Administrator, in consultation with the Secretary of 
                  Energy and the Secretary of Agriculture, shall 
                  promulgate regulations to ensure that only high-quality 
                  biodiesel that is consistent with appropriate ASTM 
                  International standards for biodiesel and biodiesel 
                  blends is introduced into commerce.
                      ``(B) Enforcement.--The Administrator shall 
                  establish an inspection program to ensure that 
                  biodiesel and biodiesel blends entering commerce meets 
                  the standards established under subparagraph (A).
                      ``(C) Violations.--Regardless of whether the 
                  Administrator promulgates regulations under 
                  subparagraph (A), it shall be a violation of this Act 
                  to produce or distribute--
                              ``(i) biodiesel or any bio-based diesel 
                          replacement that does not meet the requirements 
                          of ASTM standard D6751; or
                              ``(ii) a biodiesel blend that does not meet 
                          the equivalent ASTM standard, as determined by 
                          the Administrator.
                      ``(D) Funding.--There are authorized to be 
                  appropriated to carry out this paragraph $3,000,000 for 
                  each of fiscal years 2008 through 2010.''.
  
  SEC. 5. BIODIESEL LABELING.
  
      Subsection (p) of section 211 of the Clean Air Act (42 U.S.C. 7545) 
  (as amended by section 4) is amended by adding at the end the 
  following:
              ``(4) Biodiesel labeling.--
                      ``(A) In general.--Each retail diesel fuel pump 
                  shall be labeled in a manner that informs consumers of 
                  the percent of biodiesel that is contained in the 
                  biodiesel blend that is offered for sale, as determined 
                  by the Administrator.
                      ``(B) Labeling requirements.--Not later than 180 
                  days after the date of enactment of this subsection, 
                  the Administrator shall promulgate biodiesel labeling 
                  requirements as follows:
                              ``(i) Biodiesel blends that contain less 
                          than or equal to 5 percent biodiesel by volume 
                          and that meet ASTM D975 diesel specifications 
                          shall not require any additional labels.
                              ``(ii) Biodiesel blends that contain more 
                          than 5 percent biodiesel by volume but not more 
                          than 20 percent by volume shall be labeled 
                          `contains biodiesel in quantities between 5 
                          percent and 20 percent'.
                              ``(iii) Biodiesel blends that contain more 
                          than 20 percent biodiesel by volume shall be 
                          labeled `contains more than 20 percent 
                          biodiesel'.''.
target: Biodiesel Promotion and Quality Assurance Act of 2007 - Amends the Clean Air Act to require the Administrator of the Environmental Protection Agency (EPA) to promulgate regulations to ensure that diesel fuel sold in the United States contains the volume of biodiesel specified for 2008 through 2012. Requires the Administrator to determine the volume for 2013 and thereafter based on a review of the program. Requires at least 80% of the minimum applicable volume for each of 2008 through 2012 to be biodiesel.
  
  Requires the biodiesel fuel standards to contain compliance provisions applicable to refineries, blenders, distributors, and importers. Prohibits such standards from restricting geographic areas in which biodiesel may be used or imposing any per-gallon obligation for the use of biodiesel.
  
  Authorizes the Administrator to reduce the quantity of biodiesel required by a specified amount if market circumstances would make the price of biodiesel fuel unreasonable.
  
   Declares that nothing in this Act shall be construed to supersede any biodiesel mandate provided in any state or local law enacted as of January 1, 2008.
  
  Requires the Administrator to: (1) promulgate regulations to ensure that only high-quality biodiesel that is consistent with appropriate International standards is introduced into commerce; and (2) establish an inspection program to ensure that biodiesel and biodiesel blends entering commerce meet such standards. Prohibits the production of distribution of biodiesel, a biodiesel blend, or any bio-based diesel replacement that does not meet American Society of Testing and Materials standards, regardless of whether the Administrator promulgates such regulations.
  
  Requires retail diesel fuel pumps to be labeled to inform consumers of the percent of biodiesel in the biodiesel blend.
feat_title: To amend the Clean Air Act to promote and assure the quality of biodiesel fuel, and for other purposes.