Phantom Fuel Reform Act

SECTION 1. SHORT TITLE.

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

SEC. 2. CELLULOSIC BIOFUEL REQUIREMENT BASED ON ACTUAL PRODUCTION.

    (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 by--
            (1) striking ``based on the'' and inserting ``using the 
        exact'';
            (2) striking ``may'' and inserting ``shall''; and
            (3) striking ``same or a lesser volume'' and inserting 
        ``same volume''.

Summary: Phantom Fuel Reform Actnbsp. - Amends the Clean Air Act to revise the renewable fuel program by requiring the Administrator of the Energy Information Administration, in estimating the projected volume of cellulosic biofuel to be sold or introduced into commerce in the next year, to determine for each facility producing such biofuel during the current year: (1) the average monthly volume of biofuel produced by such facility based on the actual volume produced through October 31, and (2) the estimated annualized volume of biofuel production for such facility for the current year based on such average monthly production. Requires the estimate of cellulosic biofuel projected to be sold or introduced into commerce in the following year to equal the total of the estimated annual volumes of cellulosic biofuel production for all such facilities. Requires the Administrator, in any year in which the Administrator reduces the applicable volume of cellulosic biofuel required in gasoline, to also reduce the applicable volume of renewable fuel and advanced biofuels required by the same volume.