,,ii #aaeth ,,congress #ast ,session ,s4 #idd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bf1 #bjag,mr4 ,grassley 7for himself1 ,ms4 ,cantwell1 ,mr4 ,roberts1 ,ms4 ,hirono1 ,mr4 ,blunt1 ,mr4 ,whitehouse1 ,mrs4 ,ernst1 ,ms4 ,heitkamp1 ,mr4 ,thune1 ,mr4 ,udall1 ,mr4 ,heinrich1 ,mrs4 ,shaheen1 ,ms4 ,klobuchar1 ,mr4 ,franken1 ,mr4 ,donnelly1 and ,mrs4 ,murray7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to reform and extend the incentives for biodiesel4 #a4 ,short title ,this ,act may be cited as the ,american ,renewable ,fuel and ,job ,creation ,act of #bjag4 #b4 ,reform and extension of biodiesel tax incentives 7a7 ,income tax credit 7#a7 ,in general ,so much of section #dj;,a of the ,internal ,revenue ,code as precedes subsection 7c7 is amended to read as follows3 #dj;,a4 ,biodiesel fuels credit 7a7 ,in general ,for purposes of section #ch1 the biodiesel fuels credit determined under this section for the taxable year is #a4jj for each gallon of biodiesel produced by the taxpayer which during the taxable year-- 7#a7 is sold by the taxpayer to another person-- 7,a7 for use by such other person's trade or business as a fuel or in the production of a qualified biodiesel mixture 7other than casual off-farm production71 or 7,b7 who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person1 or 7#b7 is used by such taxpayer for any purpose described in paragraph 7#a74 7b7 ,increased credit for small producers 7#a7 ,in general ,in the case of any eligible small biodiesel producer1 subsection 7a7 shall be applied by increasing the dollar amount contained therein by #aj cents4 7#b7 ,limitation ,paragraph 7#a7 shall only apply with respect to the first #ae1jjj1jjj gallons of biodiesel produced by any eligible small biodiesel producer during any taxable year4 4 7#b7 ,definitions and special rules ,section #dj;,a7d7 of such ,code is amended by striking all that follows paragraph 7#a7 and inserting the following3 7#b7 ,qualified biodiesel mixture2 biodiesel mixture 7,a7 ,qualified biodiesel mixture 7i7 ,in general ,the term qualified biodiesel mixture means a biodiesel mixture which is-- 7,i7 sold by the producer of such mixture to any person for use as a fuel1 or 7,,ii7 used by the producer of such mixture as a fuel4 7ii7 ,sale or use must be in trade or business1 etc ,a biodiesel mixture shall not be treated as a qualified biodiesel mixture unless the sale or use described in clause 7i7 is in a trade or business of the person producing the biodiesel mixture4 7,b7 ,biodiesel mixture ,the term biodiesel mixture means a mixture which consists of biodiesel and diesel fuel 7as defined in section #djhc7;a77#c771 determined without regard to any use of kerosene4 7#c7 ,biodiesel not used for a qualified purpose ,if-- 7,a7 any credit was determined with respect to any biodiesel under this section1 and 7,b7 any person uses such biodiesel for a purpose not described in subsection 7a71 then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection 7a7 and the number of gallons of such biodiesel4 7#d7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#e7 ,limitation to biodiesel with connection to the united states 7,a7 ,in general ,no credit shall be determined under subsection 7a7 with respect to biodiesel unless such biodiesel is produced in the ,united ,states from qualified feedstocks4 ,for purposes of this paragraph1 the term ,united ,states includes any possession of the ,united ,states4 7,b7 ,qualified feedstocks ,for purposes of subparagraph 7,a71 the term qualified feedstock means any feedstock which is allowable for a fuel that is assigned a ,d code of #d under section #hj4adbf7;f7 of title #dj1 ,code of ,federal ,regulations4 4 7#c7 ,rules for small biodiesel producers 7,a7 ,in general ,section #dj;,a7e7 of such ,code is amended-- 7i7 by striking agri-biodiesel each place it appears in paragraphs 7#a7 and 7#e77;,a7 and inserting biodiesel1 7ii7 by striking subsection 7b77#d77;,c7 each place it appears in paragraphs 7#b7 and 7#c7 and inserting subsection 7b77#b71 and 7iii7 by striking subsection 7a77#c7 each place it appears in paragraphs 7#e77;,a71 7#f77;,a77i71 and 7#f77;,b77i7 and inserting subsection 7b74 7,b7 ,the heading for subsection 7e7 of section #dj;,a of such ,code is amended by striking agri-biodiesel and inserting biodiesel4 7,c7 ,the headings for paragraphs 7#a7 and 7#f7 of section #dj;,a7e7 of such ,code are each amended by striking agri-biodiesel and inserting biodiesel4 7#d7 ,renewable diesel 7,a7 ,in general ,paragraph 7#c7 of section #dj;,a7f7 of such ,code is amended to read as follows3 7#c7 ,renewable diesel defined 7,a7 ,in general ,the term renewable diesel means liquid fuel derived from biomass which-- 7i7 is not a mono-alkyl ester1 7ii7 can be used in engines designed to operate on conventional diesel fuel1 and 7iii7 meets the requirements for any ,grade ,no4 #a-;,d fuel or ,grade ,no4 #b-;,d fuel covered under the ,american ,society for ,testing and ,materials specification ,d-#ige-ac;a4 7,b7 ,exceptions ,such term shall not include-- 7i7 any liquid with respect to which a credit may be determined under section #dj1 7ii7 any fuel derived from coprocessing biomass with a feedstock which is not biomass1 or 7iii7 any fuel that is not chemically equivalent to petroleum diesel fuels that can meet fuel quality specifications applicable to diesel fuel1 gasoline1 or aviation fuel4 7,c7 ,biomass ,for purposes of this paragraph1 the term biomass has the meaning given such term by section #de,k7c77#c74 4 7,b7 ,conforming amendments ,section #dj;,a7f7 of such ,code is amended-- 7i7 by striking ,subsection 7b77#d7 in paragraph 7#b7 and inserting ,subsection 7b71 and 7ii7 by striking paragraph 7#d7 and inserting the following3 7#d7 ,certain aviation fuel ,except as provided paragraph 7#c77;,b71 the term renewable diesel shall include fuel derived from biomass which meets the requirements of a ,department of ,defense specification for military jet fuel or an ,american ,society for ,testing and ,materials specification for aviation turbine fuel4 4 7#e7 ,extension ,subsection 7g7 of section #dj;,a of such ,code is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjbj4 7#f7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by striking the item relating to section #dj;,a and inserting the following new item3 ,sec4 #dj;,a4 ,biodiesel fuels credit4 4 7b7 ,excise tax credit 7#a7 ,reform ,subsection 7c7 of section #fdbf of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7c7 ,biodiesel production credit 7#a7 ,in general ,for purposes of this section1 the biodiesel production credit is #a4jj for each gallon of biodiesel produced by the taxpayer and which-- 7,a7 is sold by such taxpayer to another person-- 7i7 for use by such other person's trade or business as a fuel or in the production of a qualified biodiesel mixture 7other than casual off-farm production71 or 7ii7 who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person1 or 7,b7 is used by such taxpayer for any purpose described in subparagraph 7,a74 7#b7 ,definitions ,any term used in this subsection which is also used in section #dj;,a shall have the meaning given such term by section #dj;,a4 7#c7 ,termination ,this subsection shall not apply to any sale1 use1 or removal after ,december #ca1 #bjbj4 4 7#b7 ,producer registration requirement ,subsection 7a7 of section #fdbf of such ,code is amended by striking subsections 7d7 and 7e7 in the flush sentence at the end and inserting subsections 7c71 7d71 and 7e74 7#c7 ,recapture 7,a7 ,in general ,subsection 7f7 of section #fdbf of such ,code is amended-- 7i7 by striking or biodiesel each place it appears in subparagraphs 7,a7 and 7,b77i7 of paragraph 7#a71 7ii7 by striking or biodiesel mixture in paragraph 7#a77;,a71 and 7iii7 by redesignating paragraph 7#b7 as paragraph 7#c7 and by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,biodiesel ,if any credit was determined under this section or paid pursuant to section #fdbg7;e7 with respect to the production of any biodiesel and any person uses such biodiesel for a purpose not described in subsection 7c77#a71 then there is hereby imposed on such person a tax equal to #a for each gallon of such biodiesel4 4 7,b7 ,conforming amendments 7i7 ,paragraph 7#c7 of section #fdbf7;f7 of such ,code1 as redesignated by subparagraph 7,a77iii71 is amended by inserting or 7#b7 after paragraph 7#a74 7ii7 ,the heading for paragraph 7#a7 of section #fdbf7;f7 of such ,code is amended by striking ,imposition of tax and inserting ,in general4 7#d7 ,limitation ,section #fdbf7;i7 of such ,code is amended-- 7,a7 in paragraph 7#b7-- 7i7 by striking biodiesel or1 and 7ii7 by striking ,biodiesel and in the heading1 and 7,b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,biodiesel ,no credit shall be determined under subsection 7a7 with respect to biodiesel unless such biodiesel is produced in the ,united ,states from qualified feedstocks 7as defined in section #dj;,a7d77#e77;,b774 4 7#e7 ,clerical amendments 7,a7 ,the heading of section #fdbf of such ,code is amended by striking alcohol fuel1 biodiesel1 and alternative fuel mixtures and inserting alcohol fuel mixtures1 biodiesel production1 and alternative fuel mixtures4 7,b7 ,the item relating to section #fdbf in the table of sections for subchapter ,b of chapter #fe of such ,code is amended by striking alcohol fuel1 biodiesel1 and alternative fuel mixtures and inserting alcohol fuel mixtures1 biodiesel production1 and alternative fuel mixtures4 7c7 ,excise payments ,subsection 7e7 of section #fdbg of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking or the biodiesel mixture credit in paragraph 7#a72 7#b7 by redesignating paragraphs 7#c7 through 7#f7 as paragraphs 7#d7 through 7#g71 respectively1 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,biodiesel production credit ,if any person produces biodiesel and sells or uses such biodiesel as provided in section #fdbf7;c77#a71 the ,secretary shall pay 7without interest7 to such person an amount equal to the biodiesel production credit with respect to such biodiesel4 2 7#c7 by striking paragraph 7#a7 or 7#b7 each place it appears in paragraphs 7#d7 and 7#f71 as redesignated by paragraph 7#b71 and inserting paragraph 7#a71 7#b71 or 7#c72 7#d7 by striking alternative fuel each place it appears in paragraphs 7#d7 and 7#f71 as redesignated by paragraph 7#b71 and inserting fuel2 and 7#e7 in paragraph 7#g77;,b71 as redesignated by paragraph 7#b7-- 7,a7 by striking biodiesel mixture 7as defined in section #fdbf7;c77#c77 and inserting biodiesel 7within the meaning of section #dj;,a72 and 7,b7 by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjbj4 7d7 ,guidance ,not later than #cj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall issue preliminary guidance with respect to the amendments made by this section4 7e7 ,effective date ,the amendments made by this section shall apply to fuel sold or used after ,december #ca1 #bjaf4 7f7 ,special rule for #bjag ,notwithstanding any other provision of law1 in the case of any biodiesel mixture credit properly determined under section #fdbf7;c7 of the ,internal ,revenue ,code of #aihf for period beginning after ,december #ca1 #bjaf1 and ending before the date of the enactment of this ,act1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one- time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4