II 

109TH CONGRESS 

1ST SESSION S. 1772 

To streamline the refinery permitting process, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 26, 2005 

Mr. INHOFE (for himself, Mr. DEMINT, Ms. MURKOWSKI, Mr. VOINOVICH, 

Mr. ISAKSON, Mr. THUNE, and Mr. BOND) introduced the following bill; 

which was read twice and referred to the Committee on Environment and 

Public Works 

A BILL 

To streamline the refinery permitting process, 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 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Gas Petroleum Refiner Improvement and Community 

6 Empowerment Act’’ or the ‘‘Gas PRICE Act’’. 

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

8 this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Definitions. 
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TITLE I—ECONOMIC DEVELOPMENT ASSISTANCE TO ENCOURAGE 

PETROLEUM-BASED REFINERY ACTIVITY ON BRAC PROPERTY 

Sec. 101. Economic development assistance to encourage petroleum-based refinery activity on BRAC property. 

TITLE II—REFINERY PERMITTING PROCESS 

Sec. 201. Streamlining of refinery permitting process. 

Sec. 202. Authorization of appropriations. 

TITLE III—EFFICIENCY 

Sec. 301. Efficiency. 

TITLE IV—FUEL EMERGENCY WAIVERS AND BOUTIQUE FUEL 

REDUCTIONS 

Sec. 401. Fuel emergency waivers. 

Sec. 402. Boutique fuel reductions. 

TITLE V—FUTURE FUELS 

Sec. 501. Future fuels. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ADMINISTRATOR.—The term ‘‘Adminis4 trator’’ means the Administrator of the Environ5 mental Protection Agency. 

6 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

7 has the meaning given the term in section 4 of the 

8 Indian Self-Determination and Education Assistance 

9 Act (25 U.S.C. 450b). 

10 (3) PERMIT.—The term ‘‘permit’’ means any 

11 permit, license, approval, variance, or other form of 

12 authorization that a refiner is required to obtain 

13 under any Federal, State, or Indian tribal law. 

14 (4) REFINER.—The term ‘‘refiner’’ means a 

15 person that— 
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1 (A) owns or operates a refinery; or 

2 (B) seeks to become an owner or operator 

3 of a refinery. 

4 (5) REFINERY.— 

5 (A) IN GENERAL.—The term ‘‘refinery’’ 

6 means a facility at which crude oil is refined 

7 into transportation fuel or other petroleum 

8 products. 

9 (B) INCLUSION.—The term ‘‘refinery’’ in10 cludes a refinery expansion. 

11 (6) REFINERY EXPANSION.—The term ‘‘refin12 ery expansion’’ means a physical change in a refin13 ery that results in an increase in the capacity of the 

14 refinery. 

15 (7) REFINERY PERMITTING AGREEMENT.—The 

16 term ‘‘refinery permitting agreement’’ means an 

17 agreement entered into between the Administrator 

18 and a State or Indian tribe under section 201. 

19 (8) REFINERY PROJECT.—The term ‘‘refinery 

20 project’’ means a project for— 

21 (A) acquisition or development of a base 

22 realignment and closure site for use for a petro23 leum refinery; or 

24 (B) acquisition, development, rehabilita25 tion, expansion, or improvement of petroleum 
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1 refining operations on a base realignment and 

2 closure site or in a community affected by a 

3 base realignment and closure site. 

4 (9) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Commerce. 

6 (10) STATE.—The term ‘‘State’’ means— 

7 (A) a State; 

8 (B) the District of Columbia; 

9 (C) the Commonwealth of Puerto Rico; 

10 and 

11 (D) any other territory or possession of the 

12 United States. 

13 TITLE I—ECONOMIC DEVELOP14 MENT ASSISTANCE TO EN15 COURAGE PETROLEUM16 BASED REFINERY ACTIVITY 

17 ON BRAC PROPERTY 

18 SEC. 101. ECONOMIC DEVELOPMENT ASSISTANCE TO EN19 COURAGE PETROLEUM-BASED REFINERY AC20 TIVITY ON BRAC PROPERTY. 

21 (a) PRIORITY.—Notwithstanding section 206 of the 

22 Public Works and Economic Development Act of 1965 (42 

23 U.S.C. 3146), in awarding funds made available to carry 

24 out section 209(c)(1) of that Act (42 U.S.C. 3149(c)(1)) 

25 pursuant to section 702 of that Act (42 U.S.C. 3232), 
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1 the Secretary and the Economic Development Administra2 tion shall give priority to refinery projects. 

3 (b) FEDERAL SHARE.—Except as provided in sub4 section (c)(3)(B) and notwithstanding the Public Works 

5 and Economic Development Act of 1965 (42 U.S.C. 3121 

6 et seq.), the Federal share of a refinery project shall be 

7 80 percent of the project cost. 

8 (c) ADDITIONAL AWARD.— 

9 (1) IN GENERAL.—The Secretary shall make an 

10 additional award in connection with a grant made to 

11 a recipient for a refinery project. 

12 (2) AMOUNT.—The amount of an additional 

13 award shall be 10 percent of the amount of the 

14 grant for the refinery project. 

15 (3) USE.—An additional award under this sub16 section shall be used— 

17 (A) to carry out any eligible purpose under 

18 the Public Works and Economic Development 

19 Act of 1965 (42 U.S.C. 3121 et seq.); 

20 (B) notwithstanding section 204 of that 

21 Act (42 U.S.C. 3144), to pay up to 100 percent 

22 of the cost of an eligible project or activity 

23 under that Act; or 

24 (C) to meet the non-Federal share require25 ments of that Act or any other Act. 
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1 (4) NON-FEDERAL SOURCE.—For the purpose 

2 of paragraph (3)(C), an additional award shall be 

3 treated as funds from a non-Federal source. 

4 (5) FUNDING.—The Secretary shall use to 

5 carry out this subsection any amounts made avail6 able for economic development assistance programs 

7 or under section 702 of that Act (42 U.S.C. 3232). 

8 TITLE II—REFINERY 

9 PERMITTING PROCESS 

10 SEC. 201. STREAMLINING OF REFINERY PERMITTING PROC11 ESS. 

12 (a) IN GENERAL.—At the request of the Governor 

13 of a State or the governing body of an Indian tribe, the 

14 Administrator shall enter into a refinery permitting agree15 ment with the State or Indian tribe under which the proc16 ess for obtaining all permits necessary for the construction 

17 and operation of a refinery shall be streamlined using a 

18 systematic interdisciplinary multimedia approach as pro19 vided in this title. 

20 (b) AUTHORITY OF ADMINISTRATOR.—Under a refin21 ery permitting agreement— 

22 (1) the Administrator shall have authority, as 

23 applicable and necessary, to— 

24 (A) accept from a refiner a consolidated 

25 application for all permits that the refiner is re-
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1 quired to obtain to construct and operate a re2 finery; 

3 (B) establish a schedule under which each 

4 Federal, State, or Indian tribal government 

5 agency that is required to make any determina6 tion to authorize the issuance of a permit 

7 shall— 

8 (i) concurrently consider, to the max9 imum extent practicable, each determina10 tion to be made; and 

11 (ii) complete each step in the permit12 ting process; and 

13 (C) issue a consolidated permit that com14 bines all permits that the refiner is required to 

15 obtain; and 

16 (2) the Administrator shall provide to State and 

17 Indian tribal government agencies— 

18 (A) financial assistance in such amounts as 

19 the agencies reasonably require to hire such ad20 ditional personnel as are necessary to enable 

21 the government agencies to comply with the ap22 plicable schedule established under paragraph 

23 (1)(B); and 
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1 (B) technical, legal, and other assistance in 

2 complying with the refinery permitting agree3 ment. 

4 (c) AGREEMENT BY THE STATE.—Under a refinery 

5 permitting agreement, a State or governing body of an In6 dian tribe shall agree that— 

7 (1) the Administrator shall have each of the au8 thorities described in subsection (b); and 

9 (2) each State or Indian tribal government 

10 agency shall— 

11 (A) make such structural and operational 

12 changes in the agencies as are necessary to en13 able the agencies to carry out consolidated 

14 project-wide permit reviews concurrently and in 

15 coordination with the Environmental Protection 

16 Agency and other Federal agencies; and 

17 (B) comply, to the maximum extent prac18 ticable, with the applicable schedule established 

19 under subsection (b)(1)(B). 

20 (d) INTERDISCIPLINARY APPROACH.— 

21 (1) IN GENERAL.—The Administrator and a 

22 State or governing body of an Indian tribe shall in23 corporate an interdisciplinary approach, to the max24 imum extent practicable, in the development, review, 

25 and approval of refinery permits subject to this title. 
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1 (2) OPTIONS.—Among other options, the inter2 disciplinary approach may include use of— 

3 (A) environmental management practices; 

4 and 

5 (B) third party contractors. 

6 (e) DEADLINES.— 

7 (1) NEW REFINERIES.—In the case of a con8 solidated permit for the construction of a new refin9 ery, the Administrator and the State or governing 

10 body of an Indian tribe shall approve or disapprove 

11 the consolidated permit not later than— 

12 (A) 270 days after the date of the receipt 

13 of the application for the consolidated permit; 

14 or 

15 (B) on agreement of the applicant, the Ad16 ministrator, and the State or governing body of 

17 the Indian tribe, 90 days after the expiration of 

18 the deadline established under subparagraph 

19 (A). 

20 (2) EXPANSION OF EXISTING REFINERIES.—In 

21 the case of a consolidated permit for the expansion 

22 of an existing refinery, the Administrator and the 

23 State or governing body of an Indian tribe shall ap24 prove or disapprove the consolidated permit not later 

25 than— 
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1 (A) 90 days after the date of the receipt 

2 of the application for the consolidated permit; 

3 or 

4 (B) on agreement of the applicant, the Ad5 ministrator, and the State or governing body of 

6 the Indian tribe, 30 days after the expiration of 

7 the deadline established under subparagraph 

8 (A). 

9 (f) FEDERAL AGENCIES.—Each Federal agency that 

10 is required to make any determination to authorize the 

11 issuance of a permit shall comply with the applicable 

12 schedule established under subsection (b)(1)(B). 

13 (g) JUDICIAL REVIEW.—Any civil action for review 

14 of any determination of any Federal, State, or Indian trib15 al government agency in a permitting process conducted 

16 under a refinery permitting agreement brought by any 

17 person or entity shall be brought exclusively in the United 

18 States district court for the district in which the refinery 

19 is located or proposed to be located. 

20 (h) EFFICIENT PERMIT REVIEW.—In order to reduce 

21 the duplication of procedures, the Administrator shall use 

22 State permitting and monitoring procedures to satisfy 

23 substantially similar Federal requirements under this title. 

24 (i) SEVERABILITY.—If 1 or more permits that are re25 quired for the construction or operation of a refinery are 
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1 not approved on or before any deadline established under 

2 subsection (e), the Administrator may issue a consolidated 

3 permit that combines all other permits that the refiner is 

4 required to obtain other than any permits that are not 

5 approved. 

6 (j) SAVINGS.—Nothing in this section affects the op7 eration or implementation of otherwise applicable law re8 garding permits necessary for the construction and oper9 ation of a refinery. 

10 SEC. 202. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated such sums 

12 as are necessary to carry out this title. 

13 TITLE III—EFFICIENCY 

14 SEC. 301. EFFICIENCY. 

15 (a) METHANE REDUCTION PROJECTS.— 

16 (1) IN GENERAL.—Not later than 180 days 

17 after the date of enactment of this Act, the Adminis18 trator shall solicit applications from eligible entities, 

19 as determined by the Administrator, for grants 

20 under the Natural Gas STAR Program under the 

21 Environmental Protection Agency to pay the Federal 

22 share of the cost of projects relating to the reduction 

23 of methane emissions in the oil and gas industries. 
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1 (2) PROJECT INCLUSIONS.—To receive a grant 

2 under paragraph (1), the application of the eligible 

3 entity shall include— 

4 (A) an identification of 1 or more tech5 nologies used to achieve a reduction in the 

6 emission of methane; and 

7 (B) an analysis of the cost-effectiveness of 

8 a technology described in subparagraph (A). 

9 (3) LIMITATION.—A grant to an eligible entity 

10 under this subsection shall not exceed $50,000. 

11 (4) FEDERAL SHARE.—The Federal share of 

12 the cost of a project under this subsection shall not 

13 exceed 50 percent. 

14 (5) AUTHORIZATION OF APPROPRIATIONS.— 

15 There is authorized to be appropriated to carry out 

16 this subsection $1,000,000 for the period of fiscal 

17 years 2006 through 2010. 

18 (b) EFFICIENCY PROMOTION WORKSHOPS.— 

19 (1) IN GENERAL.—The Administrator, in con20 junction with the Interstate Oil and Gas Compact 

21 Commission, shall conduct a series of technical 

22 workshops to provide information to officials in oil23 and gas-producing States relating to methane emis24 sion reduction techniques. 
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1 (2) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this subsection $1,000,000 for the period of fiscal 

4 years 2006 through 2010. 

5 TITLE IV—FUEL EMERGENCY 

6 WAIVERS AND BOUTIQUE 

7 FUEL REDUCTIONS 

8 SEC. 401. FUEL EMERGENCY WAIVERS. 

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

10 7545(c)(4)(C)) (as amended by section 1541 of the En11 ergy Policy Act of 2005 (Public Law 109–58; 119 Stat. 

12 1106)) is amended— 

13 (1) by redesignating the first clause (v) as 

14 clause (vi); 

15 (2) by redesignating the second clause (v) as 

16 clause (vii); and 

17 (3) by inserting after clause (iv) the following: 

18 ‘‘(v) A State shall be held harmless and not be re19 quired to revise its State implementation plan under sec20 tion 110 to account for the emissions from a waiver grant21 ed by the Administrator under clause (ii).’’. 

22 SEC. 402. BOUTIQUE FUEL REDUCTIONS. 

23 Section 211(c)(4)(C)(vii) of the Clean Air Act (42 

24 U.S.C. 7545(c)(4)(C)(vii)) (as redesignated by section 
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1 401(2)) is amended by striking subclauses (III) and (IV) 

2 and inserting the following: 

3 ‘‘(III) The Administrator shall remove a fuel from the 

4 list published under subclause (II) if a fuel ceases to be 

5 included in a State implementation plan or if a fuel in 

6 a State implementation plan is identical to a Federal fuel 

7 formulation implemented by the Administrator and shall 

8 reduce the total number of fuels permitted to be included 

9 in a State implementation plan or revision on the list pub10 lished under subclause (II) accordingly. 

11 ‘‘(IV) Subclause (I) shall not limit the authority of 

12 the Administrator to approve a control or prohibition re13 specting any new fuel under this paragraph in a State im14 plementation plan or revision to a State implementation 

15 plan if the new fuel completely replaces a fuel on the list 

16 published under subclause (II).’’. 

17 TITLE V—FUTURE FUELS 

18 SEC. 501. FUTURE FUELS. 

19 (a) EPA EVALUATION OF FISCHER-TROPSCH DIE20 SEL AND JET FUEL AS AN EMISSION CONTROL STRAT21 EGY.— 

22 (1) IN GENERAL.—In cooperation with the Sec23 retary of Energy, the Secretary of Defense, the Ad24 ministrator of the Federal Aviation Administration, 

25 Secretary of Health and Human Services, and 
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1 Fischer-Tropsch industry representatives, the Ad2 ministrator shall— 

3 (A) conduct a research and demonstration 

4 program to evaluate the air quality benefits of 

5 ultra-clean Fischer-Tropsch transportation fuel, 

6 including diesel and jet fuel; 

7 (B) evaluate the use of ultra-clean Fischer8 Tropsch transportation fuel as a mechanism for 

9 reducing engine exhaust emissions; and 

10 (C) submit recommendations to Congress 

11 on the most effective use and associated bene12 fits of these ultra-clean fuel for reducing public 

13 exposure to exhaust emissions. 

14 (2) GUIDANCE AND TECHNICAL SUPPORT.—The 

15 Administrator shall, to the extent necessary, issue 

16 any guidance or technical support documents that 

17 would facilitate the effective use and associated ben18 efit of Fischer-Tropsch fuel and blends. 

19 (3) REQUIREMENTS.—The program described 

20 in paragraph (1) shall consider— 

21 (A) the use of neat (100 percent) Fischer22 Tropsch fuel and blends with conventional 

23 crude oil-derived fuel for heavy-duty and light24 duty diesel engines and the aviation sector; and 
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1 (B) the production costs associated with 

2 domestic production of those ultra clean fuel 

3 and prices for consumers. 

4 (4) REPORTS.—The Administrator shall submit 

5 to the Committee on Environment and Public Works 

6 of the Senate and the Committee on Energy and 

7 Commerce of the House of Representatives— 

8 (A) not later than October 1, 2006, an in9 terim report on actions taken to carry out this 

10 subsection; and 

11 (B) not later than December 1, 2007, a 

12 final report on actions taken to carry out this 

13 subsection. 

14 (b) COMMERCIAL PRODUCTS FROM COAL AND PE15 TROLEUM COKE-BASED FISCHER-TROPSCH PROCESS

16 LOAN GUARANTEE PROGRAM.— 

17 (1) IN GENERAL.—Funds made available under 

18 paragraph (7) may be provided for the cost (as de19 fined in the Federal Credit Reform Act of 1990 (2 

20 U.S.C. 661 et seq.)) of loan guarantees to carry out 

21 domestic coal and petroleum coke-based Fischer22 Tropsch commercial demonstration projects for the 

23 production of diesel and jet transportation fuel. 

24 (2) DEMONSTRATION PROJECTS.— 
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1 (A) IN GENERAL.—Subject to paragraph 

2 (5), the Administrator, in consultation with the 

3 Secretary of the Treasury and Secretary of En4 ergy, shall issue loan guarantees under this 

5 subsection to carry out not more than 2 

6 projects to commercially demonstrate the feasi7 bility and viability of converting coal and petro8 leum coke, a refinery byproduct, into ultra-clean 

9 Fischer-Tropsch diesel or jet fuel, including— 

10 (i) 1 project to convert coal into ultra11 clean Fischer-Tropsch transportation fuel; 

12 and 

13 (ii) 1 project to convert a blend of 

14 coal and petroleum coke into ultra-clean 

15 Fischer-Tropsch transportation fuel. 

16 (B) DESIGN CAPACITY.—Each project shall 

17 have a design capacity to produce at least 

18 100,000,000 gallons of Fischer-Tropsch diesel 

19 or jet fuel each year. 

20 (3) APPLICANT ASSURANCES.—An applicant for 

21 a loan guarantee under this subsection shall provide 

22 assurances, satisfactory to the Administrator, that— 

23 (A) the recipient has demonstrated the 

24 Fischer-Tropsch process of the applicant 

25 through the operation of a domestic continuous 
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1 process facility with a cumulative output of at 

2 least 50,000 gallons of diesel or jet fuel; 

3 (B) the demonstration project— 

4 (i) has been subject to a full technical 

5 review; 

6 (ii) is covered by adequate production 

7 volume guarantees; and 

8 (iii) with the loan guarantee, is eco9 nomically viable within the project life; and 

10 (C) there is a reasonable assurance of re11 payment of the guaranteed loan. 

12 (4) LIMITATIONS.— 

13 (A) MAXIMUM GUARANTEE.—Except as 

14 provided in subparagraph (B), a loan guarantee 

15 under this subsection may be issued for up to 

16 80 percent of the estimated cost of a project, 

17 but may not exceed $750,000,000 for a project. 

18 (B) ADDITIONAL GUARANTEES.— 

19 (i) IN GENERAL.—The Administrator 

20 may issue additional loan guarantees for a 

21 project to cover up to 80 percent of the ex22 cess of actual project cost over estimated 

23 project cost but not to exceed 15 percent 

24 of the amount of the original guarantee. 
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1 (ii) PRINCIPAL AND INTEREST.—Sub2 ject to subparagraph (A), the Adminis3 trator shall guarantee 100 percent of the 

4 principal and interest of a loan guarantee 

5 made under subparagraph (A). 

6 (5) INSUFFICIENT AMOUNTS.—If the amount 

7 made available to carry out this subsection is insuffi8 cient to allow the Administrator to make loan guar9 antees for the 2 projects described in paragraph (2), 

10 the Administrator shall issue loan guarantees for 1 

11 qualifying project under this subsection based on the 

12 criteria established under paragraph (3), with the 

13 priority given to a coal-based project. 

14 (6) APPROVAL.—An application for a loan 

15 guarantee under this subsection shall be approved or 

16 disapproved by the Administrator not later than 90 

17 days after the application is received by the Admin18 istrator. 

19 (7) AUTHORIZATION OF APPROPRIATIONS.— 

20 There are authorized to be appropriated such sums 

21 as are necessary to carry out this subsection. 

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