To amend the Clean Air Act to reduce the proliferation of boutique fuels, and for other purposes.

Summary: Boutique Fuels Elimination Act of 2005 - Amends the Clean Air Act (CAA) to authorize the Administrator of the Environmental Protection Agency (EPA) to temporarily waive controls or prohibitions on the use of a fuel or fuel additive regulated under specified provisions of that Act or prescribed in an applicable State Implementation Plan (SIP) if the Administrator determines that: (1) extreme and unusual circumstances exist in a State or region that prevent distribution of an adequate supply of the fuel or fuel additive to consumers; (2) such circumstances are the result of a natural disaster, an Act of God, a pipeline or refinery equipment failure, or another unforeseeable event; and (3) it is in the public interest to grant the waiver. Permits such a waiver only if specified requirements are met.

States that the Administrator shall have no authority, when considering a SIP or SIP revision regarding State controls or prohibitions on motor vehicle fuel or fuel additives, to approve any fuel: (1) if doing so would increase the total number of approved fuels as of September 1, 2004, in all SIPs; and (2) unless that fuel was approved and fully implemented in at least one SIP in the applicable Petroleum Administration for Defense District (with the exception of fuels with a specified summertime Reid Vapor Pressure).

Requires the Administrator to: (1) determine the total number of fuels approved as of September 1, 2004, in all SIPs; (2) publish a list of such fuels for public review and comment; and (3) remove fuels from such list in specified circumstances (but the total number of authorized fuels shall not be reduced).

Expresses the sense of Congress that States should seek to maximize the environmental benefits available from approved fuels.

Requires the Administrator and the Secretary of Energy jointly to study and report to Congress on the effects of SIPs adopted pursuant to CAA provisions regarding State controls or prohibitions on motor vehicle fuel or fuel additives.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Boutique Fuels Elimination Act of 
2005''.

SEC. 2. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.

    (a) Temporary Waivers During Supply Emergencies.--Section 
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended 
by inserting ``(i)'' after ``(C)'' and by adding the following new 
clauses at the end thereof:
    ``(ii) The Administrator may temporarily waive a control or 
prohibition respecting the use of a fuel or fuel additive required or 
regulated by the Administrator pursuant to subsection (c), (h), (i), 
(k), or (m) of this section or prescribed in an applicable 
implementation plan under section 110 approved by the Administrator 
under clause (i) of this subparagraph if, after consultation with, and 
concurrence by, the Secretary of Energy, the Administrator determines 
that--
            ``(I) extreme and unusual fuel or fuel additive supply 
        circumstances exist in a State or region of the Nation which 
        prevent the distribution of an adequate supply of the fuel or 
        fuel additive to consumers;
            ``(II) such extreme and unusual fuel and fuel additive 
        supply circumstances are the result of a natural disaster, an 
        Act of God, a pipeline or refinery equipment failure, or 
        another event that could not reasonably have been foreseen or 
        prevented and not the lack of prudent planning on the part of 
        the suppliers of the fuel or fuel additive to such State or 
        region; and
            ``(III) it is in the public interest to grant the waiver 
        (for example, when a waiver is necessary to meet projected 
        temporary shortfalls in the supply of the fuel or fuel additive 
        in a State or region of the Nation which cannot otherwise be 
        compensated for).
    ``(iii) If the Administrator makes the determinations required 
under clause (ii), such a temporary extreme and unusual fuel and fuel 
additive supply circumstances waiver shall be permitted only if--
            ``(I) the waiver applies to the smallest geographic area 
        necessary to address the extreme and unusual fuel and fuel 
        additive supply circumstances;
            ``(II) the waiver is effective for a period of 20 calendar 
        days or, if the Administrator determines that a shorter waiver 
        period is adequate, for the shortest practicable time period 
        necessary to permit the correction of the extreme and unusual 
        fuel and fuel additive supply circumstances and to mitigate 
        impact on air quality;
            ``(III) the waiver permits a transitional period, the exact 
        duration of which shall be determined by the Administrator, 
        after the termination of the temporary waiver to permit 
        wholesalers and retailers to blend down their wholesale and 
        retail inventory;
            ``(IV) the waiver applies to all persons in the motor fuel 
        distribution system; and
            ``(V) the Administrator has given public notice to all 
        parties in the motor fuel distribution system, local and State 
        regulators, public interest groups, and consumers in the State 
        or region to be covered by the waiver.
The term `motor fuel distribution system' as used in this clause shall 
be defined by the Administrator through rulemaking.
    ``(iv) Within 180 days of the date of enactment of this clause, the 
Administrator shall promulgate regulations to implement clauses (ii) 
and (iii).
    ``(v) Nothing in this subparagraph shall--
            ``(I) limit or otherwise affect the application of any 
        other waiver authority of the Administrator pursuant to this 
        section or pursuant to a regulation promulgated pursuant to 
        this section; and
            ``(II) subject any State or person to an enforcement 
        action, penalties, or liability solely arising from actions 
        taken pursuant to the issuance of a waiver under this 
        subparagraph.''.
    (b) Limit on Number of Boutique Fuels.--Section 211(c)(4)(C) of the 
Clean Air Act (42 U.S.C. 7545(c)(4)), as amended by subsection (a), is 
further amended by adding at the end the following:
                            ``(v)(I) The Administrator shall have no 
                        authority, when considering a State 
                        implementation plan or a State implementation 
                        plan revision, to approve under this paragraph 
                        any fuel included in such plan or revision if 
                        the effect of such approval would be to 
                        increase the total number of fuels approved 
                        under this paragraph as of September 1, 2004 in 
                        all State implementation plans;
                            ``(II) The Administrator, in consultation 
                        with the Secretary of Energy, shall determine 
                        the total number of fuels approved under this 
                        paragraph as of September 1, 2004, in all State 
                        implementation plans and shall publish a list 
                        of such fuels, including the states and 
                        Petroleum Administration for Defense District 
                        in which they are used, in the Federal Register 
                        for public review and comment no later than 90 
                        days after enactment.
                            ``(III) The Administrator shall remove a 
                        fuel from the list published under subclause 
                        (II) if a fuel ceases to be included in a State 
                        implementation plan or if a fuel in a State 
                        implementation plan is identical to a Federal 
                        fuel formulation implemented by the 
                        Administrator, but the Administrator shall not 
                        reduce the total number of fuels authorized 
                        under the list published under subclause (II).
                            ``(IV) Subclause (I) shall not limit the 
                        Administrator's authority to approve a control 
                        or prohibition respecting any new fuel under 
                        this paragraph in a State implementation plan 
                        or revision to a State implementation plan if 
                        such new fuel:
                                    ``(aa) completely replaces a fuel 
                                on the list published under subclause 
                                (II); or
                                    ``(bb) does not increase the total 
                                number of fuels on the list published 
                                under paragraph (II) as of September 1, 
                                2004.
                        In the event that the total number of fuels on 
                        the list published under subclause (II) at the 
                        time of the Administrator's consideration of a 
                        control or prohibition respecting a new fuel is 
                        lower than the total number of fuels on such 
                        list as of September 1, 2004, the Administrator 
                        may approve a control or prohibition respecting 
                        a new fuel under this subclause if the 
                        Administrator, after consultation with the 
                        Secretary of Energy, publishes in the Federal 
                        Register, after notice and comment, a finding 
                        that, in the Administrator's judgment, such 
                        control or prohibition respecting a new fuel 
                        will not cause fuel supply or distribution 
                        interruptions or have a significant adverse 
                        impact on fuel producibility in the affected 
                        area or contiguous areas.
                            ``(V) Except for a fuel with a summertime 
                        Reid Vapor Pressure of 7.0 pounds per square 
                        inch, the Administrator shall have no authority 
                        under this paragraph, when considering any 
                        particular State's implementation plan or a 
                        revision to that State's implementation plan, 
                        to approve any fuel unless that fuel was, as of 
                        the date of such consideration, approved in at 
                        least one State implementation plan in the 
                        applicable Petroleum Administration for Defense 
                        District.
                            ``(VI) Nothing in this clause shall be 
                        construed to prohibit a State from requiring 
                        the use of an alcohol or bio-diesel fuel 
                        additive registered in accordance with 
                        subsection (b), including any alcohol or bio-
                        diesel fuel additive registered after the 
                        enactment of this subclause; however, this 
                        clause shall be construed to prohibit a State 
                        from requiring the use of any other fuel 
                        additive registered in accordance with 
                        subsection (b), including any other fuel 
                        additive registered after the enactment of this 
                        subclause.''.
    (c) Sense of the Congress.--It is the sense of the Congress that 
States should seek to maximize the environmental benefits available 
from the fuels authorized under subsection (b).
    (d) Study and Report to Congress on Boutique Fuels.--
            (1) Joint study.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall undertake a 
        study of the effects on air quality, on the number of fuel 
        blends, on fuel availability, on fuel fungibility, and on fuel 
        costs of the State plan provisions adopted pursuant to section 
        211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
            (2) Focus of study.--The primary focus of the study 
        required under paragraph (1) shall be to determine how to 
        develop a Federal fuels system that maximizes motor fuel 
        fungibility and supply, preserves air quality standards, and 
        reduces motor fuel price volatility that results from the 
        proliferation of boutique fuels, and to recommend to Congress 
        such legislative changes as are necessary to implement such a 
        system. The study should include the impacts on overall energy 
        supply, distribution, and use as a result of the legislative 
        changes recommended. In addition, the study shall examine the 
        need for additional, cleaner motor fuel reformulations to 
        assist states in complying with the ozone National Ambient Air 
        Quality Standard.
            (3) Responsibility of administrator.--In carrying out the 
        study required by this section, the Administrator shall 
        coordinate obtaining comments from affected parties interested 
        in the air quality impact assessment portion of the study. The 
        Administrator shall use sound and objective science practices, 
        shall consider the best available science, and shall consider 
        and include a description of the weight of the scientific 
        evidence.
            (4) Responsibility of secretary.--In carrying out the study 
        required by this section, the Secretary shall coordinate 
        obtaining comments from affected parties interested in the fuel 
        availability, number of fuel blends, fuel fungibility and fuel 
        costs portion of the study.
            (5) Public participation.--The Administrator and the 
        Secretary shall appoint a task force of interested parties, 
        including but not limited to representatives of Federal, State 
        and local governments, fuel manufacturers, suppliers, and 
        marketers and public interest groups, to provide information to 
        the Administrator and the Secretary and to assist in the 
        development of the recommendations to be included in the report 
        to Congress under paragraph (5).
            (6) Report to congress.--The Administrator and the 
        Secretary jointly shall submit the results of the study 
        required by this section in a report to the Congress not later 
        than 12 months after the date of the enactment of this Act, 
        together with any recommended regulatory and legislative 
        changes. Such report shall be submitted to the Committee on 
        Energy and Commerce of the House of Representatives and the 
        Committee on Environment and Public Works of the Senate.
            (7) Authorization of appropriations.--There is authorized 
        to be appropriated jointly to the Administrator and the 
        Secretary $500,000 for the completion of the study required 
        under this subsection.
    (e) Definitions.--In this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency.
            (2) The term ``Secretary'' means the Secretary of Energy.
            (3) The term ``fuel'' means gasoline, diesel fuel, and any 
        other liquid petroleum product commercially known as gasoline 
        and diesel fuel for use in highway and non-road motor vehicles.
            (4) The term ``a control or prohibition respecting a new 
        fuel'' means a control or prohibition on the formulation, 
        composition, or emissions characteristics of a fuel that would 
        require the increase or decrease of a constituent in gasoline 
        or diesel fuel.