SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Phantom Fuel Reform Act''.

SEC. 2. CELLULOSIC BIOFUEL REQUIREMENT.

    (a) Provision of Estimate of Volumes of Cellulosic Biofuel.--
Section 211(o)(3)(A) of the Clean Air Act (42 U.S.C. 7545(o)(3)(A)) is 
amended--
            (1) by striking ``Not later than'' and inserting the 
        following:
                            ``(i) In general.--Not later than''; and
            (2) by adding at the end the following:
                            ``(ii) Estimation method.--
                                    ``(I) In general.--In determining 
                                any estimate under clause (i), with 
                                respect to the following calendar year, 
                                of the projected volume of cellulosic 
                                biofuel production (as described in 
                                paragraph (7)(D)(i)), the Administrator 
                                of the Energy Information 
                                Administration shall--
                                            ``(aa) for each cellulosic 
                                        biofuel production facility 
                                        that is producing (and 
                                        continues to produce) 
                                        cellulosic biofuel during the 
                                        period of January 1 through 
                                        October 31 of the calendar year 
                                        in which the estimate is made 
                                        (in this clause referred to as 
                                        the `current calendar year')--

                                                    ``(AA) determine 
                                                the average monthly 
                                                volume of cellulosic 
                                                biofuel produced by 
                                                such facility, based on 
                                                the actual volume 
                                                produced by such 
                                                facility during such 
                                                period; and

                                                    ``(BB) based on 
                                                such average monthly 
                                                volume of production, 
                                                determine the estimated 
                                                annualized volume of 
                                                cellulosic biofuel 
                                                production for such 
                                                facility for the 
                                                current calendar year; 
                                                and

                                            ``(bb) for each cellulosic 
                                        biofuel production facility 
                                        that begins initial production 
                                        of (and continues to produce) 
                                        cellulosic biofuel after 
                                        January 1 of the current 
                                        calendar year--

                                                    ``(AA) determine 
                                                the average monthly 
                                                volume of cellulosic 
                                                biofuel produced by 
                                                such facility, based on 
                                                the actual volume 
                                                produced by such 
                                                facility during the 
                                                period beginning on the 
                                                date of initial 
                                                production of 
                                                cellulosic biofuel by 
                                                the facility and ending 
                                                on October 31 of the 
                                                current calendar year; 
                                                and

                                                    ``(BB) based on 
                                                such average monthly 
                                                volume of production, 
                                                determine the estimated 
                                                annualized volume of 
                                                cellulosic biofuel 
                                                production for such 
                                                facility for the 
                                                current calendar year.

                                    ``(II) Total production.--An 
                                estimate under clause (i) with respect 
                                to the following calendar year of the 
                                projected volume of cellulosic biofuel 
                                production (as described in paragraph 
                                (7)(D)(i)), shall be equal to the total 
                                of the estimated annual volumes of 
                                cellulosic biofuel production for all 
                                cellulosic biofuel production 
                                facilities described in subclause (I) 
                                for the current calendar year.''.
    (b) Reduction in Applicable Volume.--Section 211(o)(7)(D)(i) of the 
Clean Air Act (42 U.S.C. 7545(o)(7)(D)(i)) is amended--
            (1) in the first sentence, by striking ``based on the'' and 
        inserting ``using the exact''; and
            (2) in the second sentence--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``same or a lesser volume'' and 
                inserting ``same volume''.
    (c) Definition of Cellulosic Biofuel.--Section 211(o)(1)(E) of the 
Clean Air Act (42 U.S.C. 7545(o)(1)(E)) is amended--
            (1) by striking ``The term'' and inserting the following:
                            ``(i) In general.--The term''; and
            (2) by adding at the end the following:
                            ``(ii) Exclusions.--The term `cellulosic 
                        biofuel' does not include any compressed 
                        natural gas, liquefied natural gas, or 
                        electricity used to power electric vehicles 
                        that is produced from biogas from--
                                    ``(I) a landfill;
                                    ``(II) a municipal wastewater 
                                treatment facility digester;
                                    ``(III) an agricultural digester; 
                                or
                                    ``(IV) a separated municipal solid 
                                waste digester.''.
    (d) Regulation of Cellulosic and Advanced Fuel Pathways.--
            (1) In general.--Those provisions of the final rule of the 
        Administrator of the Environmental Protection Agency entitled 
        ``Regulation of Fuels and Fuel Additives: RFS Pathways II, and 
        Technical Amendments to the RFS Standards and E15 Misfueling 
        Mitigation Requirements'' (79 Fed. Reg. 42128 (July 18, 2014)) 
        relating to existing and new cellulosic biofuel pathways under 
        the renewable fuel standard under section 211(o) of the Clean 
        Air Act (42 U.S.C. 7545(o)) and that conflict with the 
        amendments made by subsection (c) shall have no force or 
        effect.
            (2) Reissuance.--The Administrator of the Environmental 
        Protection Agency shall reissue the rule described in paragraph 
        (1) to conform the rule to the amendments made by subsection 
        (c).
    (e) Cellulosic Biofuel Mandate.--In section 211(o)(2)(B)(i) of the 
Clean Air Act (42 U.S.C. 7545(o)(2)(B)(i)), in the table following 
subclause (III), strike the applicable volume of cellulosic biofuel (in 
billions of gallons) relating to calendar year 2014.
Phantom Fuel Reform Act This bill amends the Clean Air Act to revise the renewable fuel standard program. Beginning on January 1, 2015, the renewable fuel that is required to be blended into gasoline must be advanced biofuel, which cannot be ethanol derived from corn starch. This bill revises the renewable fuel standards by decreasing the total volume of renewable fuel that must be contained in gasoline sold or introduced into commerce for years 2015 through 2022. The Environmental Protection Agency (EPA) must determine the target amount of cellulosic biofuel to be blended into transportation fuel based on the actual volume of cellulosic biofuel produced in the current year.  The EPA must reduce the required volume of renewable fuel in transportation fuel by the same volume of cellulosic biofuel in the fuel.  Cellulosic biofuel does not include any compressed natural gas, liquefied natural gas, or electricity used to power electric vehicles that is produced from biogas from a landfill, a municipal wastewater treatment facility digester, an agricultural digester, or a separated municipal solid waste digester.
Phantom Fuel Reform Act