A bill to amend the Clean Air Act to permit the Governor of a State to waive oxygen content requirement for reformulated gasoline, to encourage development of voluntary standards to prevent and control releases of methyl tertiary butyl ether from underground storage tanks, to establish a program to phase out the use of methyl tertiary butyl ether, and for other purposes.

SECTION 1. WAIVER OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Waiver of oxygen content requirement.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this subsection, upon 
                        notification by the Governor of a State to the 
                        Administrator, a Governor may waive paragraphs 
                        (2)(B) and (3)(A)(v) with respect to gasoline 
                        sold or dispensed in the State.
                            ``(ii) Treatment as reformulated 
                        gasoline.--In the case of a State for which the 
                        Governor invokes the waiver described in clause 
                        (i), gasoline that complies with all provisions 
                        of this subsection other than paragraphs (2)(B) 
                        and (3)(A)(v) shall be considered to be 
                        reformulated gasoline for the purposes of this 
                        subsection.
                            ``(iii) Special rule.--Paragraphs (2)(B) 
                        and (3)(A)(v) shall not apply to gasoline sold 
                        or dispensed in a State described in subsection 
                        (c)(4)(B).
                    ``(C) Maintenance of emission reduction benefits.--
                            ``(i) Regulations.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall 
                        promulgate regulations consistent with 
                        paragraph (3)(B)(ii) to ensure that the 
                        benefits of toxic air pollutant reductions 
                        under the reformulated gasoline program under 
                        this section are maintained in States for which 
                        a Governor waives the oxygenate requirement 
                        under subparagraph (B)(i).
                            ``(ii) Regional designations.--In carrying 
                        out clause (i), the Administrator, in 
                        cooperation with the Secretary of Energy, shall 
                        develop designations for regions of the United 
                        States based on the extent and location of the 
                        gasoline distribution and supply network in the 
                        United States.
                            ``(iii) Performance standards.--The 
                        Administrator, in regulations promulgated under 
                        clause (i), shall use the regional designations 
                        developed under clause (ii) to establish annual 
                        average performance standards for each region 
                        based on--
                                    ``(I) the phase II reformulated 
                                gasoline complex model in existence on 
                                the date of enactment of this 
                                subparagraph; and
                                    ``(II) the annual reductions in 
                                emissions of toxic air pollutants 
                                achieved in the region under the 
                                reformulated gasoline program during 
                                calendar years 1998 and 1999, as 
                                determined using compliance survey 
                                data.
                            ``(iv) Applicability.--
                                    ``(I) In general.--The applicable 
                                performance standards under clause 
                                (iii) shall be applied on an annual 
                                average basis to the manufacture of 
                                reformulated gasoline that is sold or 
                                introduced into commerce by a refinery 
                                in a State for which the Governor 
                                waives the oxygenate requirement under 
                                subparagraph (B)(i).
                                    ``(II) More stringent 
                                requirements.--The applicable annual 
                                average regional performance standards 
                                under clause (i) shall not apply to the 
                                extent that any requirement under 
                                section 202(l) or the standards 
                                described in paragraph (3)(B)(ii) are 
                                more stringent.
                                    ``(III) Special rule.--The 
                                regulations promulgated under clause 
                                (i) shall not apply in a State 
                                described in subsection (c)(4)(B).
                            ``(v) Prepromulgation requirements.--Until 
                        such time as the regulations under clause (i) 
                        are promulgated, the phase II reformulated 
                        gasoline complex model toxic performance 
                        standards in existence on the date of enactment 
                        of this subparagraph shall remain in effect.''.

SEC. 2. DEVELOPMENT OF ADDITIONAL STANDARDS TO CONTROL RELEASES OF MTBE 
              FROM UNDERGROUND STORAGE TANKS.

    Not later than 2 years after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency, in consultation 
with members of the affected industries, shall conduct a study and 
submit to Congress a report on whether additional standards to 
prevent and control releases of methyl tertiary butyl ether from 
underground storage tanks are necessary.

SEC. 3. CONTROL OF OXYGENATED FUEL ADDITIVES TO PREVENT AIR OR WATER 
              POLLUTION.

    Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is 
amended by adding at the end the following: ``The Administrator may 
control or prohibit the introduction into commerce, offering for sale, 
or sale of any oxygenated fuel additive for use in a motor vehicle, 
motor vehicle engine, nonroad engine, or nonroad vehicle, if in the 
judgment of the Administrator the oxygenated fuel additive causes or 
contributes to air pollution or water pollution that may reasonably be 
anticipated to endanger the public health or welfare.''.

SEC. 4. LIMITATION ON USE OF MTBE.

    (a) Sale of Gasoline Containing MTBE.--Section 211(c) of the Clean 
Air Act (42 U.S.C. 7545(c)) is amended by adding at the end the 
following:
            ``(5) Limitations on sale of gasoline containing mtbe.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                the fourth full calendar year that begins after the 
                date of enactment of this paragraph and each calendar 
                year thereafter--
                            ``(i) the quantity of gasoline sold or 
                        introduced into commerce during the calendar 
                        year by a refiner, blender, or importer of 
                        gasoline shall contain on average not more than 
                        1 percent by volume methyl tertiary butyl 
                        ether; and
                            ``(ii) a refiner, blender, or importer of 
                        gasoline shall not sell or introduce into 
                        commerce any gasoline that contains more than 
                        an historical level by volume of methyl 
                        tertiary butyl ether, as determined by the 
                        Administrator by regulation.
                    ``(B) Regulations concerning phase-down.--As soon 
                as practicable after the date of enactment of this 
                paragraph, the Administrator shall establish by 
                regulation a program to phase down the percentage of 
                methyl tertiary butyl ether contained in gasoline in 
                accordance with subparagraph (A)(i).
                    ``(C) Regulations concerning trading.--
                            ``(i) In general.--The Administrator may 
                        promulgate regulations to permit refiners, 
                        blenders, and importers to sell to, and 
                        purchase from, each other authorizations to 
                        sell or introduce into commerce gasoline 
                        containing methyl tertiary butyl ether in 
                        excess of the limitation specified in 
                        subparagraph (A)(i).
                            ``(ii) Maximum annual limitation.--In 
                        carrying out clause (i), the Administrator 
                        shall ensure that the total quantity of 
                        gasoline sold or introduced into commerce 
                        during any calendar year by all refiners, 
                        blenders, or importers contains on average not 
                        more than 1 percent by volume methyl tertiary 
                        butyl ether.''.
    (b) State Authority To Revise Implementation Plan.--
            (1) In general.--In accordance with section 110 of the 
        Clean Air Act (42 U.S.C. 7410), a State may submit to the 
        Administrator of the Environmental Protection Agency a State 
        implementation plan revision that provides for the reduction or 
        elimination of the use of methyl tertiary butyl ether in 
        gasoline sold or introduced into commerce in the State if the 
        Governor of the State demonstrates that--
                    (A) the reduction or elimination would not cause 
                any significant disruption in the availability, supply, 
                or price of gasoline in the State;
                    (B) the reduction or elimination is necessary to 
                protect the public health or environment; and
                    (C) any alternative additive used will not present 
                an equivalent or greater problem than any problem posed 
                by the use of methyl tertiary butyl ether.
            (2) Special rule.--Paragraph (1)--
                    (A) does not apply to a State described in section 
                211(c)(4)(B) of the Clean Air Act (42 U.S.C. 
                7545(c)(4)(B)); and
                    (B) does not limit the authority of such a State 
                under section 211(c)(4)(B) of that Act to at any time 
                prescribe and enforce a control or prohibition 
                respecting methyl tertiary butyl ether or any other 
                fuel additive.
    (c) Permit Application Assistance.--In the case of any State in 
which are located 1 or more facilities that produce methyl tertiary 
butyl ether and that, as a result of any provision of or amendment made 
by this Act, apply for a new permit or permit modification under the 
Clean Air Act (42 U.S.C. 7401 et seq.), the Administrator of the 
Environmental Protection Agency shall provide to the State technical 
assistance and personnel to assist in the application for or 
modification of such permits.

SEC. 5. ASSURANCE OF ADEQUATE FUEL SUPPLY.

    (a) In General.--In order to ensure an adequate fuel supply for all 
States, any regulation or modification of fuel properties promulgated 
or approved by the Administrator of the Environmental Protection Agency 
under this Act or an amendment made by this Act shall take into 
consideration the need for reasonable schedules for carrying out 
necessary refinery investment projects and making appropriate 
modifications to fuel distribution systems.
    (b) Fuel Industry Flexibility.--In implementing and enforcing 
regulations and modifications described in subsection (a), the 
Administrator shall provide the fuel industry with the flexibility 
inherent in fuel regulations in effect on the day before the date of 
enactment of this Act.

Summary: Requires the Administrator to promulgate regulations to ensure that the benefits of toxic air pollutant reductions under the reformulated gasoline program are maintained in States for which the oxygenate requirement is waived. Directs the Administrator, in promulgating such regulations, to: (1) develop designations for regions based on the extent and location of the US gasoline distribution and supply network. And (2) use such designations to establish annual average performance standards for each region based on the existing phase II reformulated gasoline complex model and the annual reductions in toxic air pollutant emissions achieved in the region under the reformulated gasoline program during 1998 and 1999. Applies such standards to the manufacture of such gasoline sold in States for which the oxygenate requirement is waived, to the extent they are more stringent than those under existing law. Directs the Administrator to study and report to Congress on whether additional standards to prevent and control releases of methyl tertiary butyl ether (MTBE) from underground storage tanks are necessary. Authorizes the Administrator to control or prohibit the introduction into commerce or sale of any oxygenated fuel additive if it causes or contributes to air or water pollution that may be anticipated to endanger public health or welfare. Prohibits, for the fourth calendar year after this Act's enactment date and thereafter, the quantity of gasoline sold or introduced into commerce by a gasoline refiner, blender, or importer from containing on average more than one percent by volume MTBE and bars such individuals from selling or introducing into commerce any gasoline that contains more than an historical level by volume of MTBE as determined by the Administrator. Authorizes the Administrator to promulgate regulations to permit such individuals to sell and purchase authorizations to sell or introduce into commerce gasoline containing MTBE in excess of the one percent limitation. Requires the Administrator to ensure that the total quantity of gasoline sold or introduced into commerce during any calendar year by all such individuals contains on average not more than one percent MTBE. Permits States to submit State implementation plan revisions to the Administrator that provide for the reduction or elimination of the use of MTBE in gasoline in the State if the State Governor demonstrates that: (1) the reduction or elimination would not cause any significant disruption in the availability, supply, or price of gasoline in the State. (2) the reduction or elimination is necessary to protect public health or the environment. And (3) any alternative additive used will not present an equivalent or greater problem than that posed by the use of MTBE. Provides for technical assistance to States with facilities that produce MTBE to assist them in applying for, or modifying, permits as a result of provisions of this Act. Requires, in order to ensure an adequate fuel supply for all States, any regulation or modification of fuel properties promulgated or approved by the Administrator under this Act to take into consideration the need for reasonable schedules for carrying out necessary refinery investment projects and making modifications to fuel distribution systems. Directs the Administrator, in implementing and enforcing such regulations and modifications, to provide the fuel industry with the flexibility inherent in existing fuel regulations.