S. 2390 — Introduced in Senate

II 118th CONGRESS 1st Session S. 2390 IN THE SENATE OF THE UNITED STATES July 19, 2023Ms. Lummis introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To amend the Clean Air Act to create additional opportunities for small refineries to generate credits under the Renewable Fuel Program, and for other purposes. 1. Short title This Act may be cited as the Small Refinery Relief Act of 2023. 2. Generation of credits by small refineries under the renewable fuel program (a) In general Section 211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) is amended by adding at the end the following: (E) Credit generation and renewable volume obligation calculation for small refineries (i) Credit generation (I) In general A small refinery shall, for purposes of complying with paragraph (2), generate credits under paragraph (5) at the following rates: (aa) For renewable fuel, 1.5 credits shall be generated for each gallon of gasoline blended with ethanol. (bb) For biomass-based diesel, 2.0 credits shall be generated for each gallon of diesel blended with biodiesel. (II) Blending locations For purposes of the credit generation described in items (aa) and (bb) of subclause (I), blending may occur at— (aa) the small refinery; or (bb) any downstream corporate affiliate of the small refinery that has the necessary blending infrastructure. (ii) Renewable volume obligations (I) In general The Administrator shall revise subpart M of part 80 of title 40, Code of Federal Regulations (or successor regulations), to require that the annual renewable volume obligation for a small refinery under that subpart shall be calculated based on 50 percent of the annual gasoline production and 30 percent of the annual diesel production of the small refinery. (II) Excess blending Any blending in excess of the annual renewable volume obligation for a small refinery described in subclause (I) shall generate credits that may be used for compliance or sale in accordance with the generation rates described in items (aa) and (bb) of clause (i)(I). . (b) Conforming amendment Section 211(o)(5)(A)(iii) of the Clean Air Act (42 U.S.C. 7545(o)(5)(A)(iii)) is amended by striking paragraph (9)(C) and inserting subparagraphs (C) and (E)(i) of paragraph (9).