I 

109TH CONGRESS 

1ST SESSION H. R. 3081

To amend the Clean Air Act to increase the production and use of renewable 

fuel in the United States and to increase the energy independence of 

the United States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 28, 2005

Mr. GUTKNECHT (for himself, Ms. HERSETH, Mr. GOODLATTE, Mr. PETERSON of Minnesota, Mr. SCOTT of Georgia, Mr. LAHOOD, Mr. BOSWELL, 

Mr. OSBORNE, Mr. FORTENBERRY, Mr. SALAZAR, Mr. BUTTERFIELD, 

Ms. FOXX, Mr. MORAN of Kansas, Mr. KENNEDY of Minnesota, Mr. 

KING of Iowa, Mr. JOHNSON of Illinois, Mr. BURTON of Indiana, and Mr. 

LATHAM) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on 

Agriculture and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL

To amend the Clean Air Act to increase the production 

and use of renewable fuel in the United States and 

to increase the energy independence of the United States, 

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,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Renewable Fuels Act of 2005’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—GENERAL PROVISIONS 

Sec. 101. Renewable content of motor vehicle fuel. 

Sec. 102. Federal agency ethanol-blended gasoline, and biodiesel, purchasing requirement. 

Sec. 103. Monthly survey of renewable fuels demand in motor vehicle fuels market. 

Sec. 104. Commodity credit corporation bioenergy program. 

TITLE II—FEDERAL REFORMULATED FUELS 

Sec. 201. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 202. Public health and environmental impacts of fuels and fuel additives. 

Sec. 203. Analyses of motor vehicle fuel changes. 

Sec. 204. Additional opt-in areas under reformulated gasoline program. 

Sec. 205. Federal enforcement of State fuels requirements. 

Sec. 206. Fuel system requirements harmonization study. 

Sec. 207. Review of Federal procurement initiatives relating to use of recycled 

products and fleet and transportation efficiency. 

Sec. 208. Report on renewable motor fuel.

6 TITLE I—GENERAL PROVISIONS 

7 SEC. 101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL. 

8 (a) IN GENERAL.—Section 211 of the Clean Air Act 

9 (42 U.S.C. 7545) is amended—

10 (1) by redesignating subsection (o) as sub11 section (q); and 

12 (2) by inserting after subsection (n) the fol13 lowing: 

14 ‘‘(o) RENEWABLE FUEL PROGRAM.—

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

16 ‘‘(A) ETHANOL.—
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1 ‘‘(i) CELLULOSIC BIOMASS ETH2 ANOL.—The term ‘cellulosic biomass eth3 anol’ means ethanol derived from any 

4 lignocellulosic or hemicellulosic matter that 

5 is available on a renewable or recurring 

6 basis. The term includes the material spec7 ified in clauses (i) through (vi) of section 

8 9001(3)(B) of the Farm Security and 

9 Rural Investment Act of 2002 (7 U.S.C. 

10 (8101(3)(B)). 

11 ‘‘(ii) WASTE DERIVED ETHANOL.—

12 The term ‘waste derived ethanol’ means 

13 ethanol derived from—

14 ‘‘(I) material specified in clauses 

15 (vii) and (viii) of section 9001(3)(B) 

16 of the Farm Security and Rural In17 vestment Act of 2002 (7 U.S.C. 

18 (8101(3)(B)); or 

19 ‘‘(II) municipal solid waste. 

20 ‘‘(B) RENEWABLE FUEL.—

21 ‘‘(i) IN GENERAL.—The term ‘renew22 able fuel’ means motor vehicle fuel that—

23 ‘‘(I)(aa) is produced from grain, 

24 starch, oilseeds, wood fiber, or other 

25 biomass; or 
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1 ‘‘(bb) is natural gas produced 

2 from a biogas source, including a 

3 landfill, sewage waste treatment plant, 

4 feedlot, paper mill, or other place 

5 where decaying organic material is 

6 found; and 

7 ‘‘(II) is used to replace or reduce 

8 the quantity of fossil fuel present in a 

9 fuel mixture used to operate a motor 

10 vehicle. 

11 ‘‘(ii) INCLUSION.—The term ‘renew12 able fuel’ includes—

13 ‘‘(I) cellulosic biomass ethanol; 

14 ‘‘(II) waste derived ethanol; 

15 ‘‘(III) biodiesel (as defined in 

16 section 312(f) of the Energy Policy 

17 Act of 1992 (42 U.S.C. 13220(f)); 

18 and 

19 ‘‘(IV) any blending components 

20 derived from renewable fuel, except 

21 that only the renewable fuel portion of 

22 any such blending component shall be 

23 considered part of the applicable vol24 ume under the renewable fuel pro25 gram established by this subsection. 
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1 ‘‘(C) SMALL REFINERY.—The term ‘small 

2 refinery’ means a refinery for which average ag3 gregate daily crude oil throughput for the cal4 endar year (as determined by dividing the ag5 gregate throughput for the calendar year by the 

6 number of days in the calendar year) does not 

7 exceed 75,000 barrels. 

8 ‘‘(2) RENEWABLE FUEL PROGRAM.—

9 ‘‘(A) IN GENERAL.—

10 ‘‘(i) REGULATIONS.—Not later than 1 

11 year after the date of enactment of this 

12 subsection, the Administrator shall promul13 gate regulations ensuring that motor vehi14 cle fuel sold or dispensed to consumers in 

15 the contiguous United States, on an an16 nual average basis, contains the applicable 

17 volume of renewable fuel specified in sub18 paragraph (B). 

19 ‘‘(ii) COMPLIANCE.—Regardless of the 

20 date of promulgation, the regulations shall 

21 contain compliance provisions for refiners, 

22 blenders, and importers, as appropriate, to 

23 ensure that the requirements of this sub24 section are met, but shall not restrict 

25 where renewable fuel can be used, or im-
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1 pose any per-gallon obligation for the use 

2 of renewable fuel. 

3 ‘‘(iii) NO REGULATIONS.—If the Ad4 ministrator does not promulgate the regu5 lations, the applicable percentage referred 

6 to in paragraph (3), on a volume percent7 age of gasoline basis, shall be 3.2 in 2006. 

8 ‘‘(B) APPLICABLE VOLUME.—

9 ‘‘(i) For the purpose of subparagraph 

10 (A), the applicable volume for any of cal11 endar years 2006 through 2012 shall be 

12 determined in accordance with the fol13 lowing table:

Applicable 

volume of 

renewable fuel 

(in billions 

‘‘Calendar year: of gallons): 

2006 ......................................................................................... 4.0

2007 ......................................................................................... 4.7

2008 ......................................................................................... 5.4

2009 ......................................................................................... 6.1

2010 ......................................................................................... 6.8

2011 ......................................................................................... 7.4

2012 ......................................................................................... 8.0.

14 ‘‘(ii) CALENDAR YEARS 2013 AND

15 THEREAFTER.—For the purpose of sub16 paragraph (A), the applicable volume for 

17 calendar year 2013 and each calendar year 

18 thereafter shall be determined by the Ad19 ministrator, in coordination with the Sec20 retary of Energy and the Secretary of Ag-
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1 riculture. In determining the applicable 

2 volume for a calendar year, the Adminis3 trator shall take into consideration the fol4 lowing reviews: 

5 ‘‘(I) The Administrator shall re6 view the implementation of the pro7 gram since calendar year 2006 and 

8 the impact of the use of renewable 

9 fuels on the environment, air quality, 

10 energy security, and job creation. 

11 ‘‘(II) The Secretary of Agri12 culture shall review the rate of pro13 duction of cellulosic ethanol and waste 

14 derived ethanol (other than municipal 

15 solid waste) since calendar year 2006, 

16 the anticipated future production of 

17 such cellulosic ethanol and waste de18 rived ethanol, and the impact of the 

19 use of renewable fuels on rural eco20 nomic development. 

21 ‘‘(iii) LIMITATION.—An increase in 

22 the applicable volume for a calendar year 

23 under clause (ii) shall be not less than the 

24 product obtained by multiplying—
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1 ‘‘(I) the number of gallons of 

2 gasoline that the Administrator esti3 mates will be sold or introduced into 

4 commerce during the calendar year; 

5 and 

6 ‘‘(II) the quotient obtained by di7 viding—

8 ‘‘(aa) 8,000,000,000; by 

9 ‘‘(bb) the number of gallons 

10 of gasoline sold or introduced 

11 into commerce during calendar 

12 year 2012. 

13 ‘‘(3) APPLICABLE PERCENTAGES.—

14 ‘‘(A) PROVISION OF ESTIMATE OF VOL15 UMES OF GASOLINE SALES.—Not later than Oc16 tober 31 of each of calendar years 2006 

17 through 2011, the Administrator of the Energy 

18 Information Administration shall provide to the 

19 Administrator of the Environmental Protection 

20 Agency an estimate of the volumes of gasoline 

21 that will be sold or introduced into commerce in 

22 the United States during the following calendar 

23 year. 

24 ‘‘(B) DETERMINATION OF APPLICABLE

25 PERCENTAGES.—
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1 ‘‘(i) IN GENERAL.—Not later than 

2 November 30 of each of calendar years 

3 2006 through 2011, based on the estimate 

4 provided under subparagraph (A), the Ad5 ministrator shall determine and publish in 

6 the Federal Register, with respect to the 

7 following calendar year, the renewable fuel 

8 obligation that ensures that the require9 ments under paragraph (2) are met. 

10 ‘‘(ii) REQUIRED ELEMENTS.—The re11 newable fuel obligation determined for a 

12 calendar year under clause (i) shall—

13 ‘‘(I) be applicable to refiners, 

14 blenders, and importers, as appro15 priate; 

16 ‘‘(II) be expressed in terms of a 

17 volume percentage of gasoline sold or 

18 introduced into commerce; and 

19 ‘‘(III) subject to subparagraph 

20 (C)(i), consist of a single applicable 

21 percentage that applies to all cat22 egories of persons specified in sub23 clause (I). 
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1 ‘‘(C) ADJUSTMENTS.—In determining the 

2 applicable percentage for a calendar year, the 

3 Administrator shall make adjustments—

4 ‘‘(i) to prevent the imposition of re5 dundant obligations to any person specified 

6 in subparagraph (B)(ii)(I); and 

7 ‘‘(ii) to account for the use of renew8 able fuel during the previous calendar year 

9 by small refineries that are exempt under 

10 paragraph (11). 

11 ‘‘(4) EQUIVALENCY.—For the purpose of para12 graph (2), 1 gallon of either cellulosic biomass eth13 anol or waste derived ethanol shall be considered to 

14 be the equivalent of 2.5 gallons of renewable fuel. 

15 ‘‘(5) CREDIT PROGRAM.—

16 ‘‘(A) REGULATIONS.—The regulations pro17 mulgated to carry out this subsection shall pro18 vide for—

19 ‘‘(i) the generation of an appropriate 

20 amount of credits by any person that re21 fines, blends, or imports gasoline that con22 tains a quantity of renewable fuel that is 

23 greater than the quantity required under 

24 paragraph (2); 
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1 ‘‘(ii) the generation of an appropriate 

2 amount of credits for biodiesel fuel; and 

3 ‘‘(iii) if a small refinery notifies the 

4 Administrator that the small refinery 

5 waives the exemption provided by this sub6 section, the generation of credits by the 

7 small refinery beginning in the year fol8 lowing the notification. 

9 ‘‘(B) USE OF CREDITS..—A person that 

10 generates credits under subparagraph (A) may 

11 use the credits, or transfer all or a portion of 

12 the credits to another person, for the purpose 

13 of complying with paragraph (2). 

14 ‘‘(C) LIFE OF CREDITS.—A credit gen15 erated under this paragraph shall be valid to 

16 demonstrate compliance for the calendar year in 

17 which the credit was generated. 

18 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

19 CREDITS.—The regulations promulgated to 

20 carry out this subsection shall include provi21 sions permitting any person that is unable to 

22 generate or purchase sufficient credits to meet 

23 the requirement under paragraph (2) to carry 

24 forward a renewables deficit if, for the calendar 
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1 year following the year in which the renewables 

2 deficit is created—

3 ‘‘(i) the person achieves compliance 

4 with the renewables requirement under 

5 paragraph (2); and 

6 ‘‘(ii) generates or purchases additional 

7 renewables credits to offset the renewables 

8 deficit of the preceding year. 

9 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

10 FUEL USE.—

11 ‘‘(A) STUDY.—For each of calendar years 

12 2006 through 2012, the Administrator of the 

13 Energy Information Administration, in con14 sultation with the Secretary of Agriculture, 

15 shall conduct a study of renewable fuels blend16 ing to determine whether there are excessive 

17 seasonal variations in the use of renewable 

18 fuels. 

19 ‘‘(B) REGULATION OF EXCESSIVE SEA20 SONAL VARIATION.—If, for any calendar year, 

21 the Administrator of the Energy Information 

22 Administration, based on the study under sub23 paragraph (A), makes the determinations speci24 fied in subparagraph (C), the Administrator 

25 shall promulgate regulations to ensure that 35 
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1 percent or more of the quantity of renewable 

2 fuels necessary to meet the requirements under 

3 paragraph (2) is used during each of the peri4 ods specified in subparagraph (D) of each sub5 sequent calendar year. 

6 ‘‘(C) DETERMINATIONS.—The determina7 tions referred to in subparagraph (B) are 

8 that—

9 ‘‘(i) less than 35 percent of the quan10 tity of renewable fuels necessary to meet 

11 the requirements under paragraph (2) has 

12 been used during 1 of the periods specified 

13 in subparagraph (D) of the calendar year; 

14 ‘‘(ii) a pattern of excessive seasonal 

15 variation described in clause (i) will con16 tinue in subsequent calendar years; and 

17 ‘‘(iii) promulgating regulations or 

18 other requirements to impose a 35 percent 

19 or more seasonal use of renewable fuels 

20 will not prevent or interfere with the at21 tainment of national ambient air quality 

22 standards or significantly increase the 

23 price of motor fuels to the consumer. 

24 ‘‘(D) PERIODS.—The 2 periods referred to 

25 in this paragraph are—
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1 ‘‘(i) April through September; and 

2 ‘‘(ii) January through March and Oc3 tober through December. 

4 ‘‘(E) EXCLUSIONS.—Renewable fuels 

5 blended or consumed in 2006 in a State that 

6 has received a waiver under section 209(b) shall 

7 not be included in the study under subpara8 graph (A). 

9 ‘‘(7) WAIVERS.—

10 ‘‘(A) IN GENERAL.—The Administrator, in 

11 consultation with the Secretary of Agriculture 

12 and the Secretary of Energy, may waive the re13 quirements under paragraph (2), in whole or in 

14 part, on a petition by 1 or more States by re15 ducing the national quantity of renewable fuel 

16 required under this subsection—

17 ‘‘(i) based on a determination by the 

18 Administrator, after public notice and op19 portunity for comment, that implementa20 tion of the requirement would severely 

21 harm the economy or environment of a 

22 State, a region, or the United States; or 

23 ‘‘(ii) based on a determination by the 

24 Administrator and the Secretary of Agri25 culture, after public notice and opportunity 
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1 for comment, that there is an inadequate 

2 domestic supply to meet the requirement. 

3 ‘‘(B) PETITIONS FOR WAIVERS..—Not later 

4 than 90 days after the date on which a petition 

5 is received by the Administrator under subpara6 graph (A), the Administrator, in consultation 

7 with the Secretary of Agriculture and the Sec8 retary of Energy, shall approve or disapprove 

9 the petition. 

10 ‘‘(C) TERMINATION OF WAIVERS.—A waiv11 er granted under subparagraph (A) shall termi12 nate on the date that is 1 year after the date 

13 on which the waiver was granted, but may be 

14 renewed by the Administrator, after consulta15 tion with the Secretary of Agriculture and the 

16 Secretary of Energy. 

17 ‘‘(8) SMALL REFINERIES.—

18 ‘‘(A) IN GENERAL.—Paragraph (2) shall 

19 not apply to small refineries until the first cal20 endar year beginning more than 5 years after 

21 the first year set forth in the table in paragraph 

22 (2)(B)(i). 

23 ‘‘(B) STUDY.—Not later than December 

24 31, 2008, the Secretary of Energy shall com25 plete for the Administrator a study to deter-
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1 mine whether the requirements under para2 graph (2) would impose a disproportionate eco3 nomic hardship on small refineries. 

4 ‘‘(C) SMALL REFINERIES AND ECONOMIC

5 HARDSHIP.—For any small refinery that the 

6 Secretary of Energy determines would experi7 ence a disproportionate economic hardship, the 

8 Administrator shall extend the small refinery 

9 exemption for the small refinery for not less 

10 than 2 additional years. 

11 ‘‘(D) ECONOMIC HARDSHIP.—

12 ‘‘(i) EXTENSION OF EXEMPTION.—A 

13 small refinery may at any time petition the 

14 Administrator for an extension of the ex15 emption from the requirements under 

16 paragraph (2) for the reason of dispropor17 tionate economic hardship. 

18 ‘‘(ii) EVALUATION.—In evaluating a 

19 hardship petition, the Administrator, in 

20 consultation with the Secretary of Energy, 

21 shall consider the findings of the study in 

22 addition to other economic factors. 

23 ‘‘(iii) DEADLINE FOR ACTION ON PE24 TITIONS.—The Administrator shall act on 

25 any petition submitted by a small refinery 
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1 for a hardship exemption not later than 90 

2 days after the receipt of the petition. 

3 ‘‘(E) CREDIT PROGRAM.—Paragraph 

4 (6)(A)(iii) shall apply to each small refinery 

5 that waives an exemption under this paragraph. 

6 ‘‘(F) OPT-IN FOR SMALL REFINERS.—A 

7 small refinery shall be subject to paragraph (2) 

8 if the small refinery notifies the Administrator 

9 that the small refinery waives the exemption 

10 under subparagraph (C). 

11 ‘‘(p) RENEWABLE FUEL SAFE HARBOR.—

12 ‘‘(1) SAFE HARBOR.—Notwithstanding any 

13 other provision of Federal or State law, a renewable 

14 fuel (as defined in subsection (o)(1)) that is used or 

15 intended to be used as a motor vehicle fuel and any 

16 motor vehicle fuel containing renewable fuel (as so 

17 defined) shall not be considered or determined to be 

18 defective in design or manufacture by reason of the 

19 fact that the fuel is, or contains, renewable fuel, if—

20 ‘‘(A) the fuel does not violate a control or 

21 prohibition imposed by the Administrator under 

22 this section; and 

23 ‘‘(B) the manufacturer of the fuel is in 

24 compliance with all requests for information 

25 under subsection (b). 
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1 ‘‘(2) WHEN SAFE HARBOR NOT APPLICABLE.—

2 In any case in which paragraph (1) does not apply 

3 to a quantity of fuel, the existence of a design defect 

4 or manufacturing defect with respect to the fuel 

5 shall be determined under otherwise applicable law. 

6 ‘‘(3) EXCEPTION TO SAFE HARBOR.—Para7 graph (1) does not apply to ethers. 

8 ‘‘(4) EFFECTIVE DATE.—Paragraph (1) applies 

9 with respect to any claim filed on or after the date 

10 of the enactment of the Renewable Fuels Act of 

11 2005.’’. 

12 (b) PENALTIES AND ENFORCEMENT.—Section 

13 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

14 amended—

15 (1) in paragraph (1)—

16 (A) in the first sentence, by striking ‘‘or 

17 (n)’’ and inserting ‘‘(n), or (o)’’ each place it 

18 appears; and 

19 (B) in the second sentence, by striking ‘‘or 

20 (m)’’ and inserting ‘‘(m), or (o)’’; and 

21 (2) in the first sentence of paragraph (2), by 

22 striking ‘‘and (n)’’ and inserting ‘‘(n), and (o)’’ each 

23 place it appears. 
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1 SEC. 102. FEDERAL AGENCY ETHANOL-BLENDED GASO2 LINE, AND BIODIESEL, PURCHASING RE3 QUIREMENT. 

4 Title III of the Energy Policy Act of 1992 is amended 

5 by striking section 306 (42 U.S.C. 13215) and inserting 

6 the following: 

7 ‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASO8 LINE AND BIODIESEL PURCHASING REQUIRE9 MENT. 

10 ‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of 

11 each Federal agency shall ensure that, in areas in which 

12 ethanol-blended gasoline is reasonably available at a gen13 erally competitive price, the Federal agency purchases eth14 anol-blended gasoline containing at least 10 percent eth15 anol rather than nonethanol-blended gasoline, for use in 

16 vehicles used by the agency that use gasoline. 

17 ‘‘(b) BIODIESEL.—

18 ‘‘(1) DEFINITION OF BIODIESEL.—In this sub19 section, the term ‘biodiesel’ has the meaning given 

20 the term in section 312(f). 

21 ‘‘(2) REQUIREMENT.—The head of each Fed22 eral agency shall ensure that the Federal agency 

23 purchases, for use in fueling fleet vehicles that use 

24 diesel fuel used by the Federal agency at the loca25 tion at which fleet vehicles of the Federal agency are 

26 centrally fueled, in areas in which the biodiesel-
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1 blended diesel fuel described in subparagraphs (A) 

2 and (B) is available at a generally competitive 

3 price—

4 ‘‘(A) as of the date that is 5 years after 

5 the date of enactment of this paragraph, bio6 diesel-blended diesel fuel that contains at least 

7 2 percent biodiesel, rather than nonbiodiesel8 blended diesel fuel; and 

9 ‘‘(B) as of the date that is 10 years after 

10 the date of enactment of this paragraph, bio11 diesel-blended diesel fuel that contains at least 

12 20 percent biodiesel, rather than nonbiodiesel13 blended diesel fuel. 

14 ‘‘(3) REQUIREMENT OF FEDERAL LAW.—The 

15 provisions of this subsection shall not be considered 

16 a requirement of Federal law for the purposes of 

17 section 312. 

18 ‘‘(c) EXEMPTION.—This section does not apply to 

19 fuel used in vehicles excluded from the definition of ‘fleet’ 

20 by subparagraphs (A) through (H) of section 301(9).’’. 

21 SEC. 103. MONTHLY SURVEY OF RENEWABLE FUELS DE22 MAND IN MOTOR VEHICLE FUELS MARKET. 

23 (a) SURVEY REQUIRED.—The Secretary of Agri24 culture, with the assistance of the Administrator of the 

25 Energy Information Administration, shall conduct and 
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1 publish the results of a monthly survey of renewable fuels 

2 demand in the motor vehicle fuels market in the United 

3 States monthly, and in a manner designed to protect the 

4 confidentiality of individual responses. 

5 (b) CONTENT OF SURVEY.—In conducting the 

6 monthly survey required by subsection (a), the Secretary 

7 of Agriculture shall collect information, both on a national 

8 and regional basis, regarding—

9 (1) the quantity of renewable fuels produced; 

10 (2) the quantity of renewable fuels blended; 

11 (3) the quantity of renewable fuels imported; 

12 (4) the quantity of renewable fuels demanded; 

13 and 

14 (5) the market price of renewable fuels. 

15 (c) ROLE OF OFFICE OF ENERGY POLICY AND NEW

16 USES.—The Office of Energy Policy and New Uses of the 

17 Department of Agriculture shall assist the Secretary of 

18 Agriculture in evaluating the effectiveness of the renew19 able fuels mandate of the United States. 

20 (d) RENEWABLE FUELS DEFINED.—In this section, 

21 the term ‘‘renewable fuel’’ has the meaning given that 

22 term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 

23 7545(o)(1)). 
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1 SEC. 104. COMMODITY CREDIT CORPORATION BIOENERGY 

2 PROGRAM. 

3 In order to assist with the implementation of the na4 tional renewable fuels standard, funds made available 

5 under section 9010(c) of the Farm Security and Rural In6 vestment Act of 2002 (7 U.S.C. 8108) for the bioenergy 

7 program of the Department of Agriculture for a fiscal year 

8 and unobligated by the end of that fiscal year shall remain 

9 available for obligation until expended. 

10 TITLE II—FEDERAL 

11 REFORMULATED FUELS 

12 SEC. 201. ELIMINATION OF OXYGEN CONTENT REQUIRE13 MENT FOR REFORMULATED GASOLINE. 

14 (a) ELIMINATION.—

15 (1) IN GENERAL.—Section 211(k) of the Clean 

16 Air Act (42 U.S.C. 7545(k)) is amended—

17 (A) in paragraph (2)—

18 (i) in the second sentence of subpara19 graph (A), by striking ‘‘(including the oxy20 gen content requirement contained in sub21 paragraph (B))’’; 

22 (ii) by striking subparagraph (B); and 

23 (iii) by redesignating subparagraphs 

24 (C) and (D) as subparagraphs (B) and 

25 (C), respectively; 
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1 (B) in paragraph (3)(A), by striking clause 

2 (v); and 

3 (C) in paragraph (7)—

4 (i) in subparagraph (A)—

5 (I) by striking clause (i); and 

6 (II) by redesignating clauses (ii) 

7 and (iii) as clauses (i) and (ii), respec8 tively; and 

9 (ii) in subparagraph (C)—

10 (I) by striking clause (ii); and 

11 (II) by redesignating clause (iii) 

12 as clause (ii). 

13 (2) EFFECTIVE DATE.—The amendments made 

14 by paragraph (1) take effect on the date that is 1 

15 year after the date of enactment of this Act, except 

16 that the amendments shall take effect upon that 

17 date of enactment in any State that has received a 

18 waiver under section 209(b) of the Clean Air Act 

19 (42 U.S.C. 7543(b)). 

20 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS21 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

22 Act (42 U.S.C. 7545(k)(1)) is amended—

23 (1) by striking ‘‘Within 1 year after the enact24 ment of the Clean Air Act Amendments of 1990,’’ 

25 and inserting the following: 
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1 ‘‘(A) IN GENERAL.—Not later than No2 vember 15, 1991,’’; and 

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

4 ‘‘(B) MAINTENANCE OF TOXIC AIR POL5 LUTANT EMISSIONS REDUCTIONS FROM REFOR6 MULATED GASOLINE.—

7 ‘‘(i) DEFINITION OF PADD.—In this 

8 subparagraph, the term ‘PADD’ means a 

9 Petroleum Administration for Defense Dis10 trict. 

11 ‘‘(ii) REGULATIONS REGARDING EMIS12 SIONS OF TOXIC AIR POLLUTANTS.—Not 

13 later than 270 days after the date of en14 actment of this subparagraph, the Admin15 istrator shall establish, for each refinery or 

16 importer, standards for toxic air pollutants 

17 from use of the reformulated gasoline pro18 duced or distributed by the refinery or im19 porter that maintain the reduction of the 

20 average annual aggregate emissions of 

21 toxic air pollutants for reformulated gaso22 line produced or distributed by the refinery 

23 or importer during calendar years 2001 

24 and 2002, determined on the basis of data 
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1 collected by the Administrator with respect 

2 to the refinery or importer. 

3 ‘‘(iii) STANDARDS APPLICABLE TO

4 SPECIFIC REFINERIES OR IMPORTERS.—

5 ‘‘(I) APPLICABILITY OF STAND6 ARDS.—For any calendar year, the 

7 standards applicable to a refinery or 

8 importer under clause (ii) shall apply 

9 to the quantity of gasoline produced 

10 or distributed by the refinery or im11 porter in the calendar year only to the 

12 extent that the quantity is less than 

13 or equal to the average annual quan14 tity of reformulated gasoline produced 

15 or distributed by the refinery or im16 porter during calendar years 2001 

17 and 2002. 

18 ‘‘(II) APPLICABILITY OF OTHER

19 STANDARDS.—For any calendar year, 

20 the quantity of gasoline produced or 

21 distributed by a refinery or importer 

22 that is in excess of the quantity sub23 ject to subclause (I) shall be subject 

24 to standards for toxic air pollutants 
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1 promulgated under subparagraph (A) 

2 and paragraph (3)(B). 

3 ‘‘(iv) CREDIT PROGRAM.—The Admin4 istrator shall provide for the granting and 

5 use of credits for emissions of toxic air pol6 lutants in the same manner as provided in 

7 paragraph (7). 

8 ‘‘(v) REGIONAL PROTECTION OF

9 TOXICS REDUCTION BASELINES.—

10 ‘‘(I) IN GENERAL.—Not later 

11 than 60 days after the date of enact12 ment of this subparagraph, and not 

13 later than April 1 of each calendar 

14 year that begins after that date of en15 actment, the Administrator shall pub16 lish in the Federal Register a report 

17 that specifies, with respect to the pre18 vious calendar year—

19 ‘‘(aa) the quantity of refor20 mulated gasoline produced that is 

21 in excess of the average annual 

22 quantity of reformulated gasoline 

23 produced in 2001 and 2002; and 

24 ‘‘(bb) the reduction of the 

25 average annual aggregate emis-
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1 sions of toxic air pollutants in 

2 each PADD, based on retail sur3 vey data or data from other ap4 propriate sources. 

5 ‘‘(II) EFFECT OF FAILURE TO

6 MAINTAIN AGGREGATE TOXICS RE7 DUCTIONS.—If, in any calendar year, 

8 the reduction of the average annual 

9 aggregate emissions of toxic air pol10 lutants in a PADD fails to meet or 

11 exceed the reduction of the average 

12 annual aggregate emissions of toxic 

13 air pollutants in the PADD in cal14 endar years 2001 and 2002, the Ad15 ministrator, not later than 90 days 

16 after the date of publication of the re17 port for the calendar year under sub18 clause (I), shall—

19 ‘‘(aa) identify, to the max20 imum extent practicable, the rea21 sons for the failure, including the 

22 sources, volumes, and character23 istics of reformulated gasoline 

24 that contributed to the failure; 

25 and 
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1 ‘‘(bb) promulgate revisions 

2 to the regulations promulgated 

3 under clause (ii), to take effect 

4 not earlier than 180 days but not 

5 later than 270 days after the 

6 date of promulgation, to provide 

7 that, notwithstanding clause 

8 (iii)(II), all reformulated gasoline 

9 produced or distributed at each 

10 refinery or importer shall meet 

11 the standards applicable under 

12 clause (ii) not later than April 1 

13 of the year following the report 

14 under this subclause and for sub15 sequent years. 

16 ‘‘(vi) REGULATIONS TO CONTROL

17 HAZARDOUS AIR POLLUTANTS FROM

18 MOTOR VEHICLES AND MOTOR VEHICLE

19 FUELS.—Not later than July 1, 2006, the 

20 Administrator shall promulgate final regu21 lations to control hazardous air pollutants 

22 from motor vehicles and motor vehicle 

23 fuels, as provided for in section 80.1045 of 

24 title 40, Code of Federal Regulations (as 
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•HR 3081 IH 

1 in effect on the date of enactment of this 

2 subparagraph).’’. 

3 (c) CONSOLIDATION IN REFORMULATED GASOLINE

4 REGULATIONS.—Not later than 180 days after the date 

5 of enactment of this Act, the Administrator of the Envi6 ronmental Protection Agency shall revise the reformulated 

7 gasoline regulations under subpart D of part 80 of title 

8 40, Code of Federal Regulations (or any successor regula9 tions), to consolidate the regulations applicable to VOC10 Control Regions 1 and 2 under section 80.41 of that title 

11 by eliminating the less stringent requirements applicable 

12 to gasoline designated for VOC-Control Region 2 and in13 stead applying the more stringent requirements applicable 

14 to gasoline designated for VOC-Control Region 1. 

15 (d) AUTHORITY OF ADMINISTRATOR.—Nothing in 

16 this section affects or prejudices any legal claim or action 

17 with respect to regulations promulgated by the Adminis18 trator of the Environmental Protection Agency before the 

19 date of enactment of this Act regarding—

20 (1) emissions of toxic air pollutants from motor 

21 vehicles; or 

22 (2) the adjustment of standards applicable to a 

23 specific refinery or importer made under the prior 

24 regulations. 
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1 (e) DETERMINATION REGARDING A STATE PETI2 TION.—Section 211(k) of the Clean Air Act (42 U.S.C. 

3 7545(k)) is amended by inserting after paragraph (10) the 

4 following: 

5 ‘‘(11) Determination regarding a state peti6 tion—

7 ‘‘(A) In general- Notwithstanding any 

8 other provision of this section, not later than 30 

9 days after the date of enactment of this para10 graph, the Administrator shall determine the 

11 adequacy of any petition received from a Gov12 ernor of a State to exempt gasoline sold in that 

13 State from the requirements under paragraph 

14 (2)(B). 

15 ‘‘(B) APPROVAL.—If a determination 

16 under subparagraph (A) is not made by the 

17 date that is 30 days after the date of enactment 

18 of this paragraph, the petition shall be consid19 ered to be approved.’’. 

20 SEC. 202. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS 

21 OF FUELS AND FUEL ADDITIVES. 

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

23 7545(b)) is amended—

24 (1) in paragraph (2)—
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•HR 3081 IH 

1 (A) by striking ‘‘may also’’ and inserting 

2 ‘‘shall, on a regular basis,’’; and 

3 (B) by striking subparagraph (A) and in4 serting the following: 

5 ‘‘(A) to conduct tests to determine poten6 tial public health and environmental effects of 

7 the fuel or additive (including carcinogenic, 

8 teratogenic, or mutagenic effects); and’’; and 

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

10 ‘‘(4) STUDY ON CERTAIN FUEL ADDITIVES AND

11 BLENDSTOCKS.—

12 ‘‘(A) IN GENERAL.—Not later than 2 years 

13 after the date of enactment of this paragraph, 

14 the Administrator shall—

15 ‘‘(i) conduct a study on the effects on 

16 public health, air quality, and water re17 sources of increased use of, and the feasi18 bility of using as substitutes for methyl 

19 tertiary butyl ether in gasoline—

20 ‘‘(I) ethyl tertiary butyl ether; 

21 ‘‘(II) tertiary amyl methyl ether; 

22 ‘‘(III) di-isopropyl ether; 

23 ‘‘(IV) tertiary butyl alcohol; 
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•HR 3081 IH 

1 ‘‘(V) other ethers and heavy alco2 hols, as determined by the Adminis3 trator; 

4 ‘‘(VI) ethanol; 

5 ‘‘(VII) iso-octane; and 

6 ‘‘(VIII) alkylates; 

7 ‘‘(ii) conduct a study on the effects on 

8 public health, air quality, and water re9 sources of the adjustment for ethanol10 blended reformulated gasoline to the VOC 

11 performance requirements otherwise appli12 cable under sections 211(k)(1) and 

13 211(k)(3); and 

14 ‘‘(iii) submit to the Committee on En15 vironment and Public Works of the Senate 

16 and the Committee on Energy and Com17 merce of the House of Representatives a 

18 report describing the results of these stud19 ies. 

20 ‘‘(B) CONTRACTS FOR STUDY.—In car21 rying out this paragraph, the Administrator 

22 may enter into one or more contracts with non23 governmental entities including but not limited 

24 to National Energy Laboratories and institu25 tions of higher education (as defined in section 
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•HR 3081 IH 

1 101 of the Higher Education Act of 1965 (20 

2 U.S.C. 1001)).’’. 

3 SEC. 203. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

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

5 is amended by inserting after subsection (o) (as added by 

6 section 101(a)(2)) the following: 

7 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

8 AND EMISSIONS MODEL.—

9 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

10 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

11 years after the date of enactment of this sub12 section, the Administrator shall publish for pub13 lic comment a draft analysis of the changes in 

14 emissions of air pollutants and air quality due 

15 to the use of motor vehicle fuel and fuel addi16 tives resulting from implementation of the 

17 amendments made by the Renewable Fuels Act 

18 of 2005. 

19 ‘‘(B) FINAL ANALYSIS.—After providing a 

20 reasonable opportunity for comment, but not 

21 later than 5 years after the date of enactment 

22 of this paragraph, the Administrator shall pub23 lish the analysis in final form. 

24 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

25 this subsection, as soon as the necessary data are 
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•HR 3081 IH 

1 available, the Administrator shall develop and final2 ize an emissions model that reasonably reflects the 

3 effects of gasoline characteristics or components on 

4 emissions from vehicles in the motor vehicle fleet 

5 during calendar year 2005.’’. 

6 SEC. 204. ADDITIONAL OPT-IN AREAS UNDER REFORMU7 LATED GASOLINE PROGRAM. 

8 Section 211(k)(6) of the Clean Air Act (42 U.S.C. 

9 7545(k)(6)) is amended to read as follows: 

10 (1) by striking ‘‘(6) OPT-IN AREAS.—(A) 

11 Upon’’ and inserting the following: 

12 ‘‘(6) OPT-IN AREAS.—

13 ‘‘(A) CLASSIFIED AREAS.—

14 ‘‘(i) IN GENERAL.—Upon’’; 

15 (2) in subparagraph (B), by striking ‘‘(B) If’’ 

16 and inserting the following: 

17 ‘‘(ii) EFFECT OF INSUFFICIENT DO18 MESTIC CAPACITY TO PRODUCE REFORMU19 LATED GASOLINE.—If’’; 

20 (3) in subparagraph (A)(ii) (as redesignated by 

21 paragraph (2))—

22 (A) in the first sentence, by striking ‘‘sub23 paragraph (A)’’ and inserting ‘‘clause (i)’’; and 
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•HR 3081 IH 

1 (B) in the second sentence, by striking 

2 ‘‘this paragraph’’ and inserting ‘‘this subpara3 graph’’; and 

4 (4) by adding at the end the following: 

5 ‘‘(B) OZONE TRANSPORT REGION.—

6 ‘‘(i) APPLICATION OF PROHIBITION.—

7 ‘‘(I) IN GENERAL.—In addition 

8 to the provisions of subparagraph (A), 

9 upon the application of the Governor 

10 of a State in the ozone transport re11 gion established by section 184(a),the 

12 Administrator, not later than 180 

13 days after the date of receipt of the 

14 application, shall apply the prohibition 

15 specified in paragraph (5) to any area 

16 in the State (other than an area clas17 sified as a marginal, moderate, seri18 ous, or severe ozone nonattainment 

19 area under subpart 2 of part D of 

20 title I) unless the Administrator deter21 mines under clause (iii) that there is 

22 insufficient capacity to supply refor23 mulated gasoline. 

24 ‘‘(II) PUBLICATION OF APPLICA25 TION.—As soon as practicable after 
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•HR 3081 IH 

1 the date of receipt of an application 

2 under subclause (I), the Adminis3 trator shall publish the application in 

4 the Federal Register. 

5 ‘‘(ii) PERIOD OF APPLICABILITY.—

6 Under clause (i), the prohibition specified 

7 in paragraph (5) shall apply in a State—

8 ‘‘(I) commencing as soon as prac9 ticable but not later than 2 years 

10 after the date of approval by the Ad11 ministrator of the application of the 

12 Governor of the State; and 

13 ‘‘(II) ending not earlier than 4 

14 years after the commencement date 

15 determined under subclause (I). 

16 ‘‘(iii) EXTENSION OF COMMENCEMENT

17 DATE BASED ON INSUFFICIENT CAPAC18 ITY.—

19 ‘‘(I) IN GENERAL.—If, after re20 ceipt of an application from a Gov21 ernor of a State under clause (i), the 

22 Administrator determines, on the Ad23 ministrator’s own motion or on peti24 tion of any person, after consultation 

25 with the Secretary of Energy, that 
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•HR 3081 IH 

1 there is insufficient capacity to supply 

2 reformulated gasoline, the Adminis3 trator, by regulation—

4 ‘‘(aa) shall extend the com5 mencement date with respect to 

6 the State under clause (ii)(I) for 

7 not more than 1 year; and 

8 ‘‘(bb) may renew the exten9 sion under item (aa) for 2 addi10 tional periods, each of which 

11 shall not exceed 1 year. 

12 ‘‘(II) DEADLINE FOR ACTION ON

13 PETITIONS.—The Administrator shall 

14 act on any petition submitted under 

15 subclause (I) not later than 180 days 

16 after the date of receipt of the peti17 tion.’’. 

18 SEC. 205. FEDERAL ENFORCEMENT OF STATE FUELS RE19 QUIREMENTS. 

20 Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

21 7545(c)(4)(C)) is amended—

22 (1) by striking ‘‘(C) A State’’ and inserting the 

23 following: 
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•HR 3081 IH 

1 ‘‘(C) AUTHORITY OF STATE TO CONTROL

2 FUELS AND FUEL ADDITIVES FOR REASONS OF

3 NECESSITY.—

4 ‘‘(i) IN GENERAL.—A State’’; and 

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

6 ‘‘(ii) ENFORCEMENT BY THE ADMINISTRATOR.—In 

7 any case in which a State prescribes and enforces a control 

8 or prohibition under clause (i), the Administrator, at the 

9 request of the State, shall enforce the control or prohibi10 tion as if the control or prohibition had been adopted 

11 under the other provisions of this section.’’. 

12 SEC. 206. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

13 STUDY. 

14 (a) STUDY.—

15 (1) IN GENERAL.—The Administrator of the 

16 Environmental Protection Agency and the Secretary 

17 of Energy shall jointly conduct a study of Federal, 

18 State, and local requirements concerning motor vehi19 cle fuels, including—

20 (A) requirements relating to reformulated 

21 gasoline, volatility (measured in Reid vapor 

22 pressure), oxygenated fuel, and diesel fuel; and 

23 (B) other requirements that vary from 

24 State to State, region to region, or locality to 

25 locality. 
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•HR 3081 IH 

1 (2) REQUIRED ELEMENTS.—The study shall as2 sess—

3 (A) the effect of the variety of require4 ments described in paragraph (1) on the supply, 

5 quality, and price of motor vehicle fuels avail6 able to the consumer; 

7 (B) the effect of the requirements de8 scribed in paragraph (1) on achievement of—

9 (i) national, regional, and local air 

10 quality standards and goals; and 

11 (ii) related environmental and public 

12 health protection standards and goals; 

13 (C) the effect of Federal, State, and local 

14 motor vehicle fuel regulations, including mul15 tiple motor vehicle fuel requirements, on—

16 (i) domestic refineries; 

17 (ii) the fuel distribution system; and 

18 (iii) industry investment in new capac19 ity; 

20 (D) the effect of the requirements de21 scribed in paragraph (1) on emissions from ve22 hicles, refineries, and fuel handling facilities; 

23 (E) the feasibility of developing national or 

24 regional motor vehicle fuel slates for the 48 

25 contiguous States that, while protecting and im-
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•HR 3081 IH 

1 proving air quality at the national, regional, 

2 and local levels, could—

3 (i) enhance flexibility in the fuel dis4 tribution infrastructure and improve fuel 

5 fungibility; 

6 (ii) reduce price volatility and costs to 

7 consumers and producers; 

8 (iii) provide increased liquidity to the 

9 gasoline market; and 

10 (iv) enhance fuel quality, consistency, 

11 and supply; and 

12 (F) the feasibility of providing incentives, 

13 and the need for the development of national 

14 standards necessary, to promote cleaner burn15 ing motor vehicle fuel. 

16 (b) REPORT.—

17 (1) IN GENERAL.—Not later than June 1, 

18 2006, the Administrator of the Environmental Pro19 tection Agency and the Secretary of Energy shall 

20 submit to Congress a report on the results of the 

21 study conducted under subsection (a). 

22 (2) RECOMMENDATIONS.—

23 (A) IN GENERAL.—The report shall con24 tain recommendations for legislative and admin25 istrative actions that may be taken—
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•HR 3081 IH 

1 (i) to improve air quality; 

2 (ii) to reduce costs to consumers and 

3 producers; and 

4 (iii) to increase supply liquidity. 

5 (B) REQUIRED CONSIDERATIONS.—The 

6 recommendations under subparagraph (A) shall 

7 take into account the need to provide advance 

8 notice of required modifications to refinery and 

9 fuel distribution systems in order to ensure an 

10 adequate supply of motor vehicle fuel in all 

11 States. 

12 (3) CONSULTATION.—In developing the report, 

13 the Administrator of the Environmental Protection 

14 Agency and the Secretary of Energy shall consult 

15 with—

16 (A) the Governors of the States; 

17 (B) automobile manufacturers; 

18 (C) motor vehicle fuel producers and dis19 tributors; and 

20 (D) the public. 
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•HR 3081 IH 

1 SEC. 207. REVIEW OF FEDERAL PROCUREMENT INITIA2 TIVES RELATING TO USE OF RECYCLED 

3 PRODUCTS AND FLEET AND TRANSPOR4 TATION EFFICIENCY. 

5 Not later than 180 days after the date of enactment 

6 of this Act, the Administrator of General Services shall 

7 submit to Congress a report that details efforts by each 

8 Federal agency to implement the procurement policies 

9 specified in Executive Order No. 13101 (63 Fed. Reg. 

10 49643; relating to governmental use of recycled products) 

11 and Executive Order No. 13149 (65 Fed. Reg. 24607; re12 lating to Federal fleet and transportation efficiency). 

13 SEC. 208. REPORT ON RENEWABLE MOTOR FUEL. 

14 Not later than January 1, 2007, the Secretary of En15 ergy and the Secretary of Agriculture shall jointly prepare 

16 and submit to Congress a report containing recommenda17 tions for achieving, by January 1, 2025, at least 25 per18 cent renewable fuel content (calculated on an average an19 nual basis) for all gasoline sold or introduced into com20 merce in the United States.

Æ