II 

117TH CONGRESS 

2D SESSION S. 4621 

To promote low-carbon, high-octane fuels, to protect public health, and to 

improve vehicle efficiency and performance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 26, 2022 

Mr. GRASSLEY (for himself, Ms. KLOBUCHAR, Ms. ERNST, and Ms. 

DUCKWORTH) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To promote low-carbon, high-octane fuels, to protect public 

health, and to improve vehicle efficiency and performance, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Next Generation Fuels 

5 Act of 2022’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) continued increases in new automobile effi2 ciency are needed to improve consumer welfare and 

3 reduce carbon emissions; 

4 (2) the widespread availability of low-carbon, 

5 high-octane fuel will allow continued cost-effective 

6 improvements in automobile efficiency by enabling 

7 increased engine compression ratios; 

8 (3) high-octane automobiles and low-carbon 

9 fuels are readily available to consumers at little in10 cremental cost; 

11 (4) ethanol is a cost-effective and low-carbon 

12 octane enhancer; 

13 (5) the widespread adoption of climate-smart 

14 practices and precision technologies by United 

15 States corn producers over the past decade have fur16 ther reduced the carbon intensity of conventional 

17 ethanol; 

18 (6) on average, ethanol has been estimated to 

19 have lifecycle greenhouse gas emissions that are 46 

20 percent lower than average gasoline, with some corn 

21 ethanol achieving a 61-percent reduction compared 

22 to gasoline; and 

23 (7) ethanol has one of the highest blending oc24 tane values available in the marketplace. 


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1 SEC. 3. HIGH-OCTANE VEHICLES. 

2 Title II of the Clean Air Act (42 U.S.C. 7521 et seq.) 

3 is amended by adding at the end the following: 

4 ‘‘PART D—HIGH-OCTANE VEHICLES 

5 ‘‘SEC. 261. DEFINITIONS; APPLICABILITY. 

6 ‘‘(a) DEFINITIONS.—In this part: 

7 ‘‘(1) AUTOMOBILE.—The term ‘automobile’ has 

8 the meaning given to the term in section 

9 32901(a)(3) of title 49, United States Code. 

10 ‘‘(2) MANUFACTURER.—The term ‘manufac11 turer’ has the meaning given the term in section 

12 216. 

13 ‘‘(3) RESEARCH OCTANE NUMBER.—The term 

14 ‘research octane number’ has the meaning given the 

15 term in section 201 of the Petroleum Marketing 

16 Practices Act (15 U.S.C. 2821). 

17 ‘‘(b) APPLICABILITY.—This part applies with respect 

18 to any motor vehicle that is introduced into commerce 

19 that— 

20 ‘‘(1) is an automobile; 

21 ‘‘(2) uses gasoline for propulsion or any other 

22 operation of the motor vehicle, including the engine 

23 thereof; and 

24 ‘‘(3) is a model year 2027 or later motor vehi25 cle. 


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1 ‘‘SEC. 262. HIGH-OCTANE TEST FUELS. 

2 ‘‘(a) E20 CERTIFICATION FUEL.—Except as pro3 vided in subsections (b) and (c), manufacturers producing 

4 motor vehicles described in section 261(b) shall use a test 

5 fuel consisting of gasoline and 19.4 to 20 volume percent 

6 ethanol with a minimum 95 research octane number in— 

7 ‘‘(1) emissions testing and certification under 

8 section 206(a); and 

9 ‘‘(2) fuel economy testing and calculation proce10 dures under section 32904(c) of title 49, United 

11 States Code. 

12 ‘‘(b) E25 TO E30 CERTIFICATION FUEL.—As an al13 ternative to the test fuel described in subsection (a), man14 ufacturers producing motor vehicles described in section 

15 261(b) may use a test fuel consisting of gasoline and 24.3 

16 to 30 volume percent ethanol with a minimum 98 research 

17 octane number in— 

18 ‘‘(1) emissions testing and certification under 

19 section 206(a); and 

20 ‘‘(2) fuel economy testing and calculation proce21 dures under section 32904(c) of title 49, United 

22 States Code. 

23 ‘‘(c) MODEL YEAR 2032 AND LATER MODEL

24 YEARS.—Notwithstanding subsections (a) and (b), begin25 ning in model year 2032, manufacturers of motor vehicles 


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1 described in section 261(b) shall use the gasoline test fuel 

2 described in subsection (b) in— 

3 ‘‘(1) emissions testing and certification under 

4 section 206(a); and 

5 ‘‘(2) fuel economy testing and calculation proce6 dures under section 32904(c) of title 49, United 

7 States Code. 

8 ‘‘(d) FORMULATION.—The test fuels described in 

9 subsections (a) and (b) shall be produced by adding neat 

10 or denatured fuel ethanol to the gasoline criteria emissions 

11 test fuel required for use in model year 2021 and later 

12 motor vehicles. 

13 ‘‘(e) TEST FUEL EQUATIONS.—For purposes of— 

14 ‘‘(1) testing and calculation procedures under 

15 section 206(a), the emissions of motor vehicles using 

16 the test fuels described in subsection (a) or (b) shall 

17 be based exclusively on actual measured emissions; 

18 and 

19 ‘‘(2) fuel economy testing and calculation proce20 dures under section 32904(c) of title 49, United 

21 States Code, the fuel economy of motor vehicles 

22 using the test fuels described in subsection (a) or (b) 

23 shall be determined on an energy-equivalent basis, 

24 which shall be equal to the product obtained by mul25 tiplying— 


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1 ‘‘(A) the measured fuel economy; and 

2 ‘‘(B) the quotient obtained by dividing— 

3 ‘‘(i) 114,086 British thermal units per 

4 gallon; by 

5 ‘‘(ii) the volumetric energy density of 

6 the test fuel. 

7 ‘‘SEC. 263. HIGH-OCTANE VEHICLES. 

8 ‘‘(a) WARRANTY REQUIREMENTS.—Manufacturers of 

9 motor vehicles described in section 261(b) shall warrant 

10 to the ultimate purchaser and each subsequent purchaser 

11 that each such motor vehicle is designed— 

12 ‘‘(1) for model years 2027 through 2031— 

13 ‘‘(A) to operate with gasoline containing 

14 10 and up to and including 25 percent ethanol 

15 by volume; and 

16 ‘‘(B) to meet the design requirements 

17 under subsection (b)(1); and 

18 ‘‘(2) for model year 2032 and later model 

19 years— 

20 ‘‘(A) to operate with gasoline containing 

21 10 and up to and including 30 percent ethanol 

22 by volume; and 

23 ‘‘(B) to meet the design requirements 

24 under subsections (b)(1) and (c)(1). 


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1 ‘‘(b) DESIGN REQUIREMENTS BEFORE MODEL YEAR

2 2032.— 

3 ‘‘(1) MANUFACTURERS.—The manufacturer of 

4 a motor vehicle described in section 261(b) shall de5 sign each such motor vehicle— 

6 ‘‘(A) to use gasoline with a 95 research oc7 tane number or higher; and 

8 ‘‘(B) to incorporate such devices or ele9 ments of design (including physical or other 

10 barriers, devices, or technological systems) as 

11 are determined by the Administrator to be— 

12 ‘‘(i) necessary to prevent the introduc13 tion of gasoline with a research octane 

14 number that is lower than 95 into that 

15 motor vehicle; and 

16 ‘‘(ii) technically and economically fea17 sible. 

18 ‘‘(2) FUEL RETAILERS.—Any fuel retailer sell19 ing gasoline for use in a motor vehicle described in 

20 section 261(b) shall incorporate into the dispensing 

21 equipment of the fuel retailer such devices or ele22 ments of design (including physical or other barriers, 

23 devices, or technological systems) as are determined 

24 by the Administrator to be— 


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1 ‘‘(A) necessary to ensure compatibility with 

2 the motor vehicle design requirements under 

3 paragraph (1); and 

4 ‘‘(B) technically and economically feasible. 

5 ‘‘(c) DESIGN REQUIREMENTS FOR MODEL YEAR

6 2032.— 

7 ‘‘(1) MANUFACTURERS.—Subject to paragraph 

8 (3)(B), beginning in model year 2032, the manufac9 turer of a motor vehicle described in section 261(b) 

10 shall design each such motor vehicle— 

11 ‘‘(A) to use gasoline with a 98 research oc12 tane number or higher; and 

13 ‘‘(B) to incorporate such devices or ele14 ments of design (including physical or other 

15 barriers, devices, or technological systems) as 

16 are determined by the Administrator to be— 

17 ‘‘(i) necessary to prevent the introduc18 tion of gasoline with a research octane 

19 number that is lower than 98 into that 

20 motor vehicle; and 

21 ‘‘(ii) technically and economically fea22 sible. 

23 ‘‘(2) FUEL RETAILER.—Subject to paragraph 

24 (3)(B), any fuel retailer selling gasoline for use in a 

25 motor vehicle described in section 261(b) that is 


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1 model year 2032 or later shall incorporate into the 

2 dispensing equipment of the fuel retailer such de3 vices or elements of design (including physical or 

4 other barriers, devices, or technological systems) as 

5 are determined by the Administrator to be— 

6 ‘‘(A) necessary to ensure compatibility with 

7 the motor vehicle design requirements under 

8 paragraph (1); and 

9 ‘‘(B) technically and economically feasible. 

10 ‘‘(3) EPA DETERMINATION OF NATIONWIDE

11 AVAILABILITY.— 

12 ‘‘(A) DETERMINATION REQUIRED.—Not 

13 later than December 31, 2030, and not later 

14 than each December 31 thereafter until the Ad15 ministrator determines that 98 research octane 

16 number gasoline can be made readily available 

17 nationwide, the Administrator shall— 

18 ‘‘(i) determine whether 98 research 

19 octane number gasoline can be made read20 ily available nationwide; and 

21 ‘‘(ii) publish that determination in the 

22 Federal Register. 

23 ‘‘(B) EFFECT.—The requirements of this 

24 subsection shall not take effect until the date 

25 on which the Administrator— 


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1 ‘‘(i) determines under subparagraph 

2 (A)(i) that 98 research octane number gas3 oline can be made readily available nation4 wide; and 

5 ‘‘(ii) publishes that determination 

6 under subparagraph (A)(ii). 

7 ‘‘(C) FAILURE TO MAKE DETERMINA8 TION.—If the Administrator fails to make a de9 termination under subparagraph (A) by the ap10 plicable date under that subparagraph, the Ad11 ministrator shall be deemed to have determined 

12 that 98 research octane number gasoline can be 

13 made readily available nationwide for purposes 

14 of subparagraph (B). 

15 ‘‘(d) VIOLATIONS.— 

16 ‘‘(1) MANUFACTURERS.— 

17 ‘‘(A) IN GENERAL.—Any manufacturer 

18 who violates subsection (b)(1) or (c)(1) shall be 

19 subject to a civil penalty of not more than 

20 $5,000 for each offense. 

21 ‘‘(B) SEPARATE OFFENSES.—Any violation 

22 described in subparagraph (A) shall constitute 

23 a separate offense with respect to each motor 

24 vehicle. 

25 ‘‘(2) FUEL RETAILER.— 


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1 ‘‘(A) IN GENERAL.—Any fuel retailer who 

2 violates subsection (b)(2) or (c)(2) shall be sub3 ject to a civil penalty of not more than $2,500 

4 for each offense. 

5 ‘‘(B) SEPARATE OFFENSE.—Any violation 

6 described in subparagraph (A) with respect to 

7 dispensing equipment shall constitute a sepa8 rate offense with respect to each unit of dis9 pensing equipment in violation of the applicable 

10 subsection described in that subparagraph. 

11 ‘‘SEC. 264. MISFUELING. 

12 ‘‘(a) PROHIBITIONS AGAINST TAMPERING AND DE13 FEAT DEVICES FOR MOTOR VEHICLES.—In lieu of apply14 ing section 203(a)(3) with respect to the requirements of 

15 this part, the following shall apply: 

16 ‘‘(1) No person shall— 

17 ‘‘(A) remove or render inoperative any de18 vice or element of design installed on or in a 

19 motor vehicle pursuant to subsection (b)(1) or 

20 (c)(1) of section 263 prior to its sale and deliv21 ery to the ultimate purchaser; or 

22 ‘‘(B) knowingly remove or render inoper23 ative any such device or element of design after 

24 such sale and delivery to the ultimate pur25 chaser. 


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1 ‘‘(2) No person shall manufacture or sell, or 

2 offer to sell, or install, any part or component in3 tended for use with, or as part of, any motor vehicle, 

4 where— 

5 ‘‘(A) a principal effect of the part or com6 ponent is to bypass, defeat, or render inoper7 ative any device or element of design installed 

8 on or in a motor vehicle pursuant to subsection 

9 (b)(1) or (c)(1) of section 263; and 

10 ‘‘(B) the person knows or should know 

11 that such part or component is being offered 

12 for sale or installed for such use or put to such 

13 use. 

14 ‘‘(b) PROHIBITIONS AGAINST TAMPERING AND DE15 FEAT DEVICES FOR DISPENSING EQUIPMENT.—No per16 son shall— 

17 ‘‘(1) remove or render inoperative any device or 

18 element of design installed pursuant to subsection 

19 (b)(2) or (c)(2) of section 263; or 

20 ‘‘(2) sell, or offer to sell, or incorporate into, 

21 any part or component intended for use with, or as 

22 part of, any dispensing equipment, where— 

23 ‘‘(A) a principal effect of the part or com24 ponent is to bypass, defeat, or render inoper25 ative any device or element of design incorVerDate Sep 11 2014 16:08 Aug 01, 2022 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 porated into dispensing equipment pursuant to 

2 subsection (b)(2) or (c)(2) of section 263; and 

3 ‘‘(B) the person knows or should know 

4 that such part or component is being offered 

5 for sale or incorporated for such use or put to 

6 such use. 

7 ‘‘(c) VIOLATIONS.— 

8 ‘‘(1) IN GENERAL.—Any person who violates 

9 this section shall be subject to a civil penalty of not 

10 more than $2,500. 

11 ‘‘(2) SEPARATE OFFENSES.—Any violation de12 scribed in paragraph (1) shall constitute a separate 

13 offense with respect to— 

14 ‘‘(A) each motor vehicle or unit of dis15 pensing equipment, for purposes of subsections 

16 (a)(1) and (b)(1); and 

17 ‘‘(B) each part or component, for purposes 

18 of subsections (a)(2) and (b)(2). 

19 ‘‘SEC. 265. OCTANE STANDARD. 

20 ‘‘(a) OCTANE STANDARD.— 

21 ‘‘(1) PROHIBITION.— 

22 ‘‘(A) 95 RESEARCH OCTANE NUMBER MAR23 KETING.—No person shall sell motor vehicle 

24 gasoline marketed as 95 research octane numVerDate Sep 11 2014 16:08 Aug 01, 2022 Jkt 029200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 ber unless that gasoline has a research octane 

2 number of 95 or greater. 

3 ‘‘(B) 98 RESEARCH OCTANE NUMBER MAR4 KETING.—No person shall sell motor vehicle 

5 gasoline marketed as 98 research octane num6 ber unless that gasoline has a research octane 

7 number of 98 or greater. 

8 ‘‘(C) DEEMED COMPLIANCE.—A person, 

9 including any distributor, blender, marketer, re10 seller, carrier, retailer, or wholesaler, shall be 

11 deemed to be in full compliance with this para12 graph if the person can demonstrate, through 

13 evidence deemed acceptable by the Adminis14 trator, that the person had reason to believe in 

15 good faith that the motor vehicle gasoline com16 plied with subparagraph (A) or (B). 

17 ‘‘(2) CONTROLS.— 

18 ‘‘(A) 95 RESEARCH OCTANE NUMBER

19 AVAILABILITY.—Effective January 1, 2026, any 

20 person that owns, leases, operates, controls, or 

21 supervises— 

22 ‘‘(i) a retail outlet at which 200,000 

23 or more gallons of gasoline were sold dur24 ing calendar year 2023 or any subsequent 

25 calendar year, shall offer for sale motor veVerDate Sep 11 2014 16:08 Aug 01, 2022 Jkt 029200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 hicle gasoline of not less than 95 research 

2 octane number at that retail outlet; or 

3 ‘‘(ii) 6 or more retail outlets offering 

4 motor vehicle gasoline for sale, shall offer 

5 for sale motor vehicle gasoline of not less 

6 than 95 research octane number at not 

7 fewer than 60 percent of those retail out8 lets. 

9 ‘‘(B) 98 RESEARCH OCTANE NUMBER

10 AVAILABILITY.—Effective January 1, 2031, any 

11 person that owns, leases, operates, controls, or 

12 supervises— 

13 ‘‘(i) a retail outlet at which 200,000 

14 or more gallons of gasoline were sold dur15 ing calendar year 2029 or any subsequent 

16 calendar year, shall offer for sale motor ve17 hicle gasoline of not less than 98 research 

18 octane number at that retail outlet; or 

19 ‘‘(ii) 6 or more retail outlets offering 

20 motor vehicle fuel for sale, shall offer for 

21 sale motor vehicle gasoline of not less than 

22 98 research octane number at no fewer 

23 than 60 percent of those retail outlets. 

24 ‘‘(b) VIOLATIONS.—Any person that violates— 


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1 ‘‘(1) subsection (a)(1), (a)(2)(A)(i), or 

2 (a)(2)(B)(i) shall be subject to a civil penalty of not 

3 more than $25,000 for each day on which the viola4 tion continues; and 

5 ‘‘(2) subsection (a)(2)(A)(ii) or (a)(2)(B)(ii) 

6 shall be subject to a civil penalty of not more than 

7 $2,500 per day for each retail outlet owned, leased, 

8 operated, controlled, or supervised by that person. 

9 ‘‘SEC. 266. REGULATIONS. 

10 ‘‘The Administrator shall— 

11 ‘‘(1) not later than 1 year after the date of en12 actment of the Next Generation Fuels Act of 2022, 

13 propose regulations to carry out this part; and 

14 ‘‘(2) not later than 2 years after that date of 

15 enactment, finalize regulations to carry out this 

16 part. 

17 ‘‘SEC. 267. LIABILITY LIMITATION AND PREEMPTION. 

18 ‘‘(a) LIMITATION OF LIABILITY.—A manufacturer of 

19 a motor vehicle, or a gasoline retailer, that is in compli20 ance with the requirements of this part and the require21 ments of sections 203(e) and 206 of the Petroleum Mar22 keting Practices Act, shall not be liable under any provi23 sion of this Act or any other Federal, State, or local law, 

24 including common law, for damages— 


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1 ‘‘(1) to or caused by a motor vehicle described 

2 in section 261(b); and 

3 ‘‘(2) that would not have occurred but for the 

4 introduction of gasoline with a research octane num5 ber required by this part. 

6 ‘‘(b) PREEMPTION.—No State or any political sub7 division of a State may adopt, continue in effect, or en8 force, any provision of law or regulation— 

9 ‘‘(1) requiring motor vehicles to operate using 

10 gasoline with a certain octane content, or the cor11 responding design of equipment for dispensing such 

12 gasoline into such motor vehicles, unless the provi13 sion of that law or regulation is the same as the cor14 responding provision under this part; or 

15 ‘‘(2) limiting the concentration of ethanol in 

16 motor vehicle gasoline. 

17 ‘‘SEC. 268. CIVIL ACTIONS; ADMINISTRATIVE ASSESSMENT 

18 OF CERTAIN PENALTIES. 

19 ‘‘The provisions of subsections (b) and (c) of section 

20 205 shall apply with respect to a violation of section 263 

21 or 264 to the same extent and in the same manner as 

22 such provisions apply with respect to a violation of section 

23 203(a)(3).’’. 


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1 SEC. 4. OCTANE DISCLOSURE. 

2 (a) HIGH-EFFICIENCY FUELS.—Title II of the Petro3 leum Marketing Practices Act (15 U.S.C. 2821 et seq.) 

4 is amended by adding at the end the following: 

5 ‘‘SEC. 206. HIGH-EFFICIENCY FUEL AND VEHICLE MAR6 KETING REQUIREMENTS. 

7 ‘‘(a) RULE.—The Federal Trade Commission shall, 

8 by rule, and in consultation with persons to be regulated 

9 under this section, consumer advocates, and other stake10 holders, as appropriate— 

11 ‘‘(1) prescribe or revise requirements under this 

12 title relating to the certification, display, and rep13 resentation of the automotive fuel rating of an auto14 motive fuel as necessary to carry out— 

15 ‘‘(A) the requirement under subsection (b); 

16 and 

17 ‘‘(B) any determination made under sub18 section (c); 

19 ‘‘(2) make the determination required under 

20 subsection (c); and 

21 ‘‘(3) prescribe requirements under subsection 

22 (d). 

23 ‘‘(b) REQUIREMENT.—The Federal Trade Commis24 sion shall require that, for purposes of this title, beginning 

25 on the date that is 180 days after the date on which the 

26 Federal Trade Commission issues a final rule under subVerDate Sep 11 2014 16:08 Aug 01, 2022 Jkt 029200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S4621.IS S4621

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1 section (a), the automotive fuel rating of an automotive 

2 fuel with a research octane number of 95 or higher be 

3 determined only by the research octane number of such 

4 automotive fuel. 

5 ‘‘(c) LABELING.— 

6 ‘‘(1) IN GENERAL.—The Federal Trade Com7 mission shall prescribe requirements— 

8 ‘‘(A) as the Federal Trade Commission de9 termines necessary with respect to a display at 

10 the point of sale to ultimate purchasers of auto11 motive fuel and a display on a motor vehicle 

12 to— 

13 ‘‘(i) inform such ultimate purchaser of 

14 such automotive fuel and any purchaser or 

15 user of such motor vehicle that— 

16 ‘‘(I) a model year 2027 or later 

17 motor vehicle is only warrantied to 

18 use automotive fuel with a research 

19 octane number of 95 or higher; and 

20 ‘‘(II) a model year 2032 or later 

21 motor vehicle is only warrantied to 

22 use automotive fuel with a research 

23 octane number of 98 or higher; 

24 ‘‘(ii) provide a warning to such ulti25 mate purchaser of such automotive fuel 


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1 and any such purchaser or user of such 

2 motor vehicle, that the use of automotive 

3 fuel with a research octane number that— 

4 ‘‘(I) is lower than 95 in a model 

5 year 2027 or later motor vehicle will 

6 result in reduced fuel economy, in7 creased exhaust emissions, and pos8 sibly engine damage; and 

9 ‘‘(II) is lower than 98 in a model 

10 year 2032 or later motor vehicle will 

11 result in reduced fuel economy, in12 creased exhaust emissions, and pos13 sibly engine damage; and 

14 ‘‘(iii) inform such ultimate purchaser 

15 of such automotive fuel and any purchaser 

16 or user of such motor vehicle that— 

17 ‘‘(I) a model year 2027 or later 

18 motor vehicle is warrantied to use 

19 gasoline containing up to and includ20 ing 25 percent ethanol by volume; and 

21 ‘‘(II) a model year 2032 or later 

22 motor vehicle is warrantied to use 

23 gasoline containing up to and includ24 ing 30 percent ethanol by volume; and 

25 ‘‘(B) that are applicable to— 


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1 ‘‘(i) a manufacturer of a new motor 

2 vehicle (or an entity making a representa3 tion in connection with the sale of such 

4 motor vehicle) with respect to a display on 

5 such motor vehicle; and 

6 ‘‘(ii) an automotive fuel retailer, with 

7 respect to a display at the point of sale to 

8 an ultimate purchaser of automotive fuel. 

9 ‘‘(2) CONSIDERATIONS.—In prescribing require10 ments under paragraph (1), the Federal Trade Com11 mission shall ensure that such requirements are de12 signed to be— 

13 ‘‘(A) understandable to— 

14 ‘‘(i) the ultimate purchaser of auto15 motive fuel; and 

16 ‘‘(ii) any purchaser or user of a model 

17 year 2027 or later motor vehicle; and 

18 ‘‘(B) cost effective for automotive fuel re19 tailers. 

20 ‘‘(d) DEADLINES.—The Federal Trade Commission 

21 shall— 

22 ‘‘(1) not later than January 1, 2025, issue a 

23 proposed rule under subsection (a); and 

24 ‘‘(2) not later than July 1, 2026, issue a final 

25 rule under subsection (a).’’. 


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1 (b) ENFORCEMENT.—Section 203(e) of the Petro2 leum Marketing Practices Act (15 U.S.C. 2823(e)) is 

3 amended— 

4 (1) by striking ‘‘or a rule prescribed’’ and in5 serting ‘‘a rule prescribed’’; and 

6 (2) by striking ‘‘of such section.’’ and inserting 

7 ‘‘of section 202, or a rule prescribed under section 

8 206.’’. 

9 (c) TABLE OF CONTENTS AMENDMENT.—The table 

10 of contents for the Petroleum Marketing Practices Act (15 

11 U.S.C. 2801 et seq.) is amended by inserting after the 

12 item relating to section 205 the following: 

‘‘Sec. 206. High-efficiency fuel and vehicle marketing requirements.’’. 

13 SEC. 5. ADVERTISEMENT OF PRICE OF HIGH-OCTANE 

14 AUTOMOTIVE FUEL. 

15 (a) IN GENERAL.—It shall be unlawful for any per16 son to sell or offer for sale, at retail, automotive fuel with 

17 a research octane number (as such terms are defined in 

18 section 201 of the Petroleum Marketing Practices Act (15 

19 U.S.C. 2821)) of 95 or greater unless such person dis20 plays, in a manner specified in the rules promulgated 

21 under subsection (b), the total price per gallon of such 

22 fuel on any sign on which such person displays the price 

23 of the most-sold grade of automotive fuel of such person. 

24 (b) RULEMAKING.— 


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1 (1) IN GENERAL.—Not later than 24 months 

2 after the date of enactment of this Act, the Federal 

3 Trade Commission shall promulgate, in accordance 

4 with section 553 of title 5, United States Code, any 

5 rules necessary for the implementation and enforce6 ment of this section. 

7 (2) CONTENTS.—Such rules— 

8 (A) shall define ‘‘retail’’ and ‘‘most-sold’’ 

9 for the purposes of this section; 

10 (B) shall specify the manner in which the 

11 price of automotive fuel with a research octane 

12 number of 95 or greater must be displayed in 

13 order to comply with subsection (a); and 

14 (C) shall be consistent with the require15 ments for declaring unfair acts or practices in 

16 section 5(n) of the Federal Trade Commission 

17 Act (15 U.S.C. 45(n)). 

18 (c) ENFORCEMENT.—A violation of subsection (a) 

19 shall be treated as a violation of a rule defining an unfair 

20 or deceptive act or practice prescribed under section 

21 18(a)(1)(B) of the Federal Trade Commission Act (15 

22 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 

23 shall enforce this section in the same manner, by the same 

24 means, and with the same jurisdiction, powers, and duties 

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1 eral Trade Commission Act (15 U.S.C. 41 et seq.) were 

2 incorporated into and made part of this section. 

3 SEC. 6. E40 RETAIL INFRASTRUCTURE STANDARD. 

4 Section 9003 of the Solid Waste Disposal Act (42 

5 U.S.C. 6991b) is amended by adding at the end the fol6 lowing: 

7 ‘‘(k) E40-COMPATIBLE RETAIL INFRASTRUCTURE

8 SYSTEMS.— 

9 ‘‘(1) DEFINITIONS.—In this subsection: 

10 ‘‘(A) AUTOMOTIVE FUEL.—The term 

11 ‘automotive fuel’ has the meaning given the 

12 term in section 201 of the Petroleum Marketing 

13 Practices Act (15 U.S.C. 2821). 

14 ‘‘(B) COMPATIBLE.—The term ‘compat15 ible’ means, to the extent feasible, certified by 

16 a nationally recognized testing laboratory recog17 nized by the Occupational Safety and Health 

18 Administration in accordance with section 

19 1910.7 of title 29, Code of Federal Regulations 

20 (or any successor regulations) to maintain sys21 tem performance throughout the operational life 

22 of the dispenser system. 

23 ‘‘(C) DISPENSER SYSTEM.—The term ‘dis24 penser system’ has the meaning given the term 

25 in section 280.12 of title 40, Code of Federal 


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1 Regulations (as in effect on the date of enact2 ment of this subsection). 

3 ‘‘(2) PERFORMANCE STANDARDS.—The Admin4 istrator shall, not later than January 1, 2024, issue 

5 or revise, as necessary, performance standards for 

6 underground storage tank systems and dispenser 

7 systems that are brought into use on or after Janu8 ary 1, 2024, to require that those systems be com9 patible with automotive fuel consisting of gasoline 

10 and at least 40 percent ethanol by volume. 

11 ‘‘(3) COMPATIBILITY.—An owner or operator 

12 may demonstrate the compatibility of an under13 ground storage tank system with automotive fuel 

14 containing any concentration of ethanol through the 

15 use of a secondary containment system that is 

16 able— 

17 ‘‘(A) to contain regulated substances 

18 leaked from the primary containment system 

19 until the regulated substances are detected and 

20 removed; and 

21 ‘‘(B) to prevent the release of regulated 

22 substances to the environment at any time dur23 ing the operational life of the underground stor24 age tank system.’’. 


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1 SEC. 7. REGISTRATION TESTING, REID VAPOR PRESSURE, 

2 AND SUBSTANTIALLY SIMILAR WAIVERS. 

3 (a) REGISTRATION TESTING WAIVER.—Section 

4 211(e) of the Clean Air Act (42 U.S.C. 7545(e)) is amend5 ed by adding at the end the following: 

6 ‘‘(4) Fuels consisting of gasoline and no more than 

7 30 percent ethanol by volume that meet the requirements 

8 of subsection (f)(3) shall be deemed— 

9 ‘‘(A) to have satisfied any testing regulations 

10 promulgated under this subsection; and 

11 ‘‘(B) to be immediately eligible for registration 

12 under subsection (b) without further testing.’’. 

13 (b) REID VAPOR PRESSURE WAIVER.—Section 

14 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is 

15 amended— 

16 (1) in paragraph (4)— 

17 (A) in the matter preceding subparagraph 

18 (A), by inserting ‘‘or more’’ after ‘‘10 percent’’; 

19 and 

20 (B) in subparagraph (C), by striking ‘‘ad21 ditional alcohol or’’; and 

22 (2) in paragraph (5)(A), by inserting ‘‘or more’’ 

23 after ‘‘10 percent’’. 

24 (c) SUBSTANTIALLY SIMILAR WAIVER.—Section 

25 211(f) of the Clean Air Act (42 U.S.C. 7545(f)) is amend26 ed— 


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1 (1) by striking the subsection designation and 

2 all that follows through ‘‘Effective upon’’ in sub3 paragraph (B) and inserting the following: 

4 ‘‘(f)(1) Effective upon’’; 

5 (2) by striking paragraph (3) and inserting the 

6 following: 

7 ‘‘(3) Fuels consisting of gasoline and ethanol may be 

8 introduced into commerce under this subsection for use 

9 in motor vehicles described in section 261(b), provided 

10 that the finished fuel— 

11 ‘‘(A) does not exceed the warranted ethanol lev12 els described in section 263(a); 

13 ‘‘(B) meets the physical and chemical criteria 

14 specified by ASTM International Standard D4814– 

15 20 for gasoline with 15 percent ethanol; and 

16 ‘‘(C) consists solely of carbon, hydrogen, oxy17 gen, and sulfur, excepting any impurities present at 

18 trace levels that are gaseous upon combustion.’’; and 

19 (3) in paragraph (4), in the first sentence, by 

20 striking ‘‘or (3)’’. 

21 SEC. 8. CLEAN OCTANE STANDARD. 

22 Section 211 of the Clean Air Act (42 U.S.C. 7545) 

23 is amended— 

24 (1) in subsection (d)— 


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1 (A) in paragraph (1), by striking ‘‘or (o)’’ 

2 each place it appears and inserting ‘‘(o), or 

3 (w)’’; and 

4 (B) in paragraph (2), by striking ‘‘and 

5 (o)’’ each place it appears and inserting ‘‘(o), 

6 and (w)’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(w) CLEAN OCTANE STANDARD.— 

9 ‘‘(1) DEFINITIONS.—In this subsection: 

10 ‘‘(A) BASELINE LIFECYCLE GREENHOUSE

11 GAS EMISSIONS.—The term ‘baseline lifecycle 

12 greenhouse gas emissions’ means the average 

13 lifecycle greenhouse gas emissions, as deter14 mined by the Administrator, in consultation 

15 with the Director of the Argonne National Lab16 oratory, for unblended gasoline sold or distrib17 uted as transportation fuel in 2022. 

18 ‘‘(B) LIFECYCLE GREENHOUSE GAS EMIS19 SIONS.—The term ‘lifecycle greenhouse gas 

20 emissions’ means the aggregate quantity of 

21 greenhouse gas emissions as determined by the 

22 Secretary of Energy using the version of the 

23 Argonne National Laboratory Greenhouse 

24 gases, Regulated Emissions, and Energy use in 

25 Transportation (GREET) model in effect as of 


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1 the date of enactment of the Next Generation 

2 Fuels Act of 2022. 

3 ‘‘(C) RESEARCH OCTANE NUMBER.—The 

4 term ‘research octane number’ has the meaning 

5 given the term in section 201 of the Petroleum 

6 Marketing Practices Act (15 U.S.C. 2821). 

7 ‘‘(2) AROMATICS.— 

8 ‘‘(A) ANNUAL AVERAGE LIMITATION.—Ef9 fective beginning on January 1, 2026, it shall 

10 be unlawful for refiners or importers to sell 

11 motor vehicle gasoline that contains, on an av12 erage annual basis, an aromatic hydrocarbon 

13 concentration in excess of 17.5 percent by vol14 ume. 

15 ‘‘(B) 2026 CAP.—Effective beginning on 

16 January 1, 2026, it shall be unlawful for refin17 ers or importers to sell motor vehicle gasoline 

18 that contains an aromatic hydrocarbon con19 centration in excess of 30 percent by volume. 

20 ‘‘(C) 2031 CAP.—Effective beginning on 

21 January 1, 2031, it shall be unlawful for refin22 ers or importers to sell motor vehicle gasoline 

23 that contains an aromatic hydrocarbon content 

24 in excess of 25 percent by volume. 


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1 ‘‘(D) OXYGENATE ADJUSTMENT FOR GASO2 LINE BLENDSTOCK.— 

3 ‘‘(i) IN GENERAL.—For purposes of 

4 compliance with this paragraph, the aro5 matics volume of motor vehicle gasoline 

6 produced as blendstock for oxygenate 

7 blending may be adjusted based on the 

8 specified type and amount of oxygenate re9 quired to be added downstream. 

10 ‘‘(ii) REQUIREMENTS.—Any adjust11 ment under clause (i) shall be made 

12 through— 

13 ‘‘(I) the preparation of a hand 

14 blend containing oxygenate; or 

15 ‘‘(II) any other method deemed 

16 acceptable to the Administrator. 

17 ‘‘(E) REGULATIONS.— 

18 ‘‘(i) IN GENERAL.—The Administrator 

19 shall promulgate regulations to implement 

20 this paragraph. 

21 ‘‘(ii) CONTENTS.—Regulations pro22 mulgated under clause (i) shall allow for 

23 the generation of tradeable credits to meet 

24 the requirement of subparagraph (A), but 


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1 any credits shall expire after not more 

2 than 5 years. 

3 ‘‘(iii) INITIAL REGULATIONS.—Not 

4 later than January 1, 2026, the Adminis5 trator shall promulgate final regulations 

6 under clause (i). 

7 ‘‘(3) LOW-CARBON OCTANE.— 

8 ‘‘(A) PROHIBITION.—Effective beginning 

9 on January 1, 2026, no refiner or importer 

10 shall introduce into commerce motor vehicle 

11 gasoline with a research octane number of 95 

12 or higher except through the use of a fuel addi13 tive that has average lifecycle greenhouse gas 

14 emissions that (as determined by the Secretary 

15 of Energy using the version of the Argonne Na16 tional Laboratory Greenhouse gases, Regulated 

17 Emissions, and Energy use in Transportation 

18 (GREET) model in effect as of the date of en19 actment of the Next Generation Fuels Act of 

20 2022) are at least 40 percent less than baseline 

21 lifecycle greenhouse gas emissions. 

22 ‘‘(B) REGULATIONS.— 

23 ‘‘(i) IN GENERAL.—The Administrator 

24 shall promulgate regulations to implement 

25 this paragraph. 


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1 ‘‘(ii) CONTENTS.—Regulations pro2 mulgated under clause (i) shall— 

3 ‘‘(I) determine the baseline 

4 lifecycle greenhouse gas emissions for 

5 purposes of this paragraph; 

6 ‘‘(II) determine the average 

7 lifecycle greenhouse gas emissions of 

8 sources of octane value for purposes 

9 of this paragraph; and 

10 ‘‘(III) ensure that the require11 ments of this paragraph are met. 

12 ‘‘(iii) INITIAL REGULATIONS.—Not 

13 later than January 1, 2025, the Adminis14 trator shall promulgate final regulations 

15 under clause (i).’’. 

16 SEC. 9. NEW FUEL EFFECTS STUDY. 

17 (a) FUEL EFFECTS STUDY.— 

18 (1) STUDY REQUIRED.—Subject to subsection 

19 (b), the Administrator of the Environmental Protec20 tion Agency (referred to in this section as the ‘‘Ad21 ministrator’’) shall carry out a study of the emis22 sions effects of ethanol-blended fuels in light-duty 

23 vehicles and light-duty trucks, for the purpose of up24 dating the Motor Vehicle Emission Simulator mod25 eling system. 


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1 (2) REQUIREMENTS.—In designing and con2 ducting the study under paragraph (1), the Adminis3 trator shall— 

4 (A) select test fuels that— 

5 (i) reflect a range of ethanol con6 centrations between 0 and at least 25 per7 cent by volume; and 

8 (ii) are representative of fuels that are 

9 widely available on the date of enactment 

10 of this Act or reasonably could be available 

11 regionally or nationally, taking into ac12 count fuel refinery operations and econom13 ics, including the cost of reformate; 

14 (B) select test vehicles that are representa15 tive of vehicles of recent model years as of the 

16 date of enactment of this Act that include rel17 evant technologies that are, or reasonably may 

18 come to be, in widespread use; 

19 (C) measure emission products of combus20 tion including, at a minimum— 

21 (i) particulate matter of 2.5 microm22 eters in diameter or less; 

23 (ii) ultrafine particulate matter of 0.1 

24 micrometers in diameter or less; 

25 (iii) nitrogen oxides; 


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1 (iv) total hydrocarbons; 

2 (v) nonmethane organic gas; 

3 (vi) carbon monoxide; 

4 (vii) benzene; 

5 (viii) toluene; 

6 (ix) ethylbenzene; 

7 (x) xylene; 

8 (xi) 1,3-butadiene; 

9 (xii) ethanol; and 

10 (xiii) polycyclic aromatic hydro11 carbons, including at a minimum 

12 benzo(a)pyrene; 

13 (D) measure the tendency of measured 

14 emissions to form secondary organic aerosols 

15 and any other relevant secondary air pollution; 

16 and 

17 (E) consult with the Secretary of Energy, 

18 the Secretary of Agriculture, and the Secretary 

19 of Transportation (or their delegates). 

20 (b) CERTIFICATION BY SECRETARY OF ENERGY.— 

21 The Administrator shall— 

22 (1) provide the proposed design of the study 

23 under subsection (a) to the Secretary of Energy for 

24 review; and 


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1 (2) not commence the study under subsection 

2 (a) until the Secretary of Energy certifies in writing 

3 that the design of the study complies with the re4 quirements of subsection (a). 

5 SEC. 10. DUAL-FUELED AUTOMOBILE DEFAULT UTILIZA6 TION FACTOR. 

7 (a) IN GENERAL.—Section 32905 of title 49, United 

8 States Code, is amended by striking subsection (b) and 

9 inserting the following: 

10 ‘‘(b) DUAL-FUELED AUTOMOBILES.— 

11 ‘‘(1) IN GENERAL.—Except as provided in sub12 section (d) or section 32904(a)(2)— 

13 ‘‘(A) for any model of dual-fueled auto14 mobile manufactured by a manufacturer in 

15 model years 1993 through 2019, the Adminis16 trator of the Environmental Protection Agency 

17 shall measure the fuel economy for that model 

18 by dividing 1.0 by the sum of— 

19 ‘‘(i) 0.5 divided by the fuel economy 

20 measured under section 32904(c) when op21 erating the model on gasoline or diesel 

22 fuel; and 

23 ‘‘(ii) 0.5 divided by the fuel econ24 omy— 


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1 ‘‘(I) measured under subsection 

2 (a) when operating the model on al3 ternative fuel; or 

4 ‘‘(II) measured based on the fuel 

5 content of B20 when operating the 

6 model on B20, which is deemed to 

7 contain 0.15 gallon of fuel; and 

8 ‘‘(B) subject to paragraph (2), for any 

9 model of dual-fueled automobile manufactured 

10 by a manufacturer in model year 2023 or later, 

11 the Administrator of the Environmental Protec12 tion Agency shall measure the fuel economy for 

13 that model by dividing 1.0 by the sum of— 

14 ‘‘(i) 0.79 divided by the fuel economy 

15 measured under section 32904(c) when op16 erating the model on gasoline or diesel 

17 fuel; and 

18 ‘‘(ii) 0.21 divided by the fuel economy 

19 measured under subsection (a) when oper20 ating the model on alternative fuel. 

21 ‘‘(2) HIGHER UTILIZATION FACTOR FOR NEW

22 MODELS.—A manufacturer may demonstrate that a 

23 higher utilization factor applies to any model of 

24 dual-fueled automobile manufactured by the manu25 facturer in model year 2023 or later.’’. 


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1 (b) TESTING PROCEDURES.—Section 206 of the 

2 Clean Air Act (42 U.S.C. 7525) is amended by adding 

3 at the end the following: 

4 ‘‘(i) REQUIREMENT TO UPDATE TEST PROCE5 DURES.—Not later than July 1, 2023, the Administrator 

6 shall amend the test procedures promulgated under this 

7 section to be in accordance with section 32905(b)(1)(B) 

8 of title 49, United States Code.’’. 

9 SEC. 11. TRANSFERS OF CREDITS FOR EXCEEDING AVER10 AGE FUEL ECONOMY STANDARDS. 

11 Section 32903(g) of title 49, United States Code, is 

12 amended by striking paragraph (3) and inserting the fol13 lowing: 

14 ‘‘(3) MAXIMUM INCREASE.—The maximum in15 crease in any compliance category attributable to 

16 transferred credits is— 

17 ‘‘(A) for model year 2021, 4.0 miles per 

18 gallon; and 

19 ‘‘(B) for model year 2022 and subsequent 

20 model years, 6.0 miles per gallon.’’. 

21 SEC. 12. EXTENSION AND EXPANSION OF ALTERNATIVE 

22 FUEL VEHICLE REFUELING PROPERTY CRED23 IT. 

24 (a) IN GENERAL.—Section 30C of the Internal Rev25 enue Code of 1986 is amended— 


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1 (1) by amending subsection (c) to read as fol2 lows: 

3 ‘‘(c) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) QUALIFIED ALTERNATIVE FUEL VEHICLE

5 REFUELING PROPERTY.—The term ‘qualified alter6 native fuel vehicle refueling property’ means any 

7 property (not including a building and its structural 

8 components) if— 

9 ‘‘(A) such property is of a character sub10 ject to the allowance for depreciation, 

11 ‘‘(B) the original use of such property be12 gins with the taxpayer, and is not used as the 

13 principal residence (within the meaning of sec14 tion 121) of the taxpayer, and 

15 ‘‘(C) such property is used— 

16 ‘‘(i) for the storage or dispensing of a 

17 qualifying fuel into the fuel tank of a 

18 motor vehicle propelled by such fuel, but 

19 only if the storage or dispensing of the fuel 

20 is at the point where such fuel is delivered 

21 into the fuel tank of the motor vehicle, or 

22 ‘‘(ii) for the recharging of motor vehi23 cles propelled by electricity, but only if 

24 such property is located at the point where 

25 the motor vehicles are recharged. 


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1 ‘‘(2) QUALIFYING FUEL.—The term ‘qualifying 

2 fuel’ means— 

3 ‘‘(A) any fuel at least 50 percent of the 

4 volume of which consists of natural gas, com5 pressed natural gas, liquified natural gas, lique6 fied petroleum gas, or hydrogen, or 

7 ‘‘(B) any fuel mixture at least 20 percent 

8 of the volume of which consists of ethanol or 

9 biodiesel, without regard to any denaturant or 

10 kerosene used in such mixture.’’, and 

11 (2) in subsection (g), by striking ‘‘December 

12 31, 2021’’ and inserting ‘‘December 31, 2027’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2021. 

Æ 


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