article: 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'.''.
summary: 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.