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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2962 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2962

   To amend the Clean Air Act to address problems concerning methyl 
             tertiary butyl ether, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2000

  Mr. Smith of New Hampshire introduced the following bill; which was 
  read twice and referred to the Committee on Environment and Public 
                                 Works

_______________________________________________________________________

                                 A BILL

 
   To amend the Clean Air Act to address problems concerning methyl 
             tertiary butyl ether, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reformulated Fuels Act of 
2000''.

SEC. 2. WAIVER OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED GASOLINE.

    Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Waiver of oxygen content requirement.--
                            ``(i) Authority of the governor.--
                                    ``(I) In general.--Notwithstanding 
                                any other provision of this subsection, 
                                a Governor of a State, upon 
                                notification by the Governor to the 
                                Administrator during the 90-day period 
                                beginning on the date of enactment of 
                                this subparagraph, may waive the 
                                application of paragraphs (2)(B) and 
                                (3)(A)(v) to gasoline sold or dispensed 
                                in the State.
                                    ``(II) Opt-in areas.--A Governor of 
                                a State that submits an application 
                                under paragraph (6) may, as part of 
                                that application, waive the application 
                                of paragraphs (2)(B) and (3)(A)(v) to 
                                gasoline sold or dispensed in the 
                                State.
                            ``(ii) Treatment as reformulated 
                        gasoline.--In the case of a State for which the 
                        Governor invokes the waiver described in clause 
                        (i), gasoline that complies with all provisions 
                        of this subsection other than paragraphs (2)(B) 
                        and (3)(A)(v) shall be considered to be 
                        reformulated gasoline for the purposes of this 
                        subsection.
                            ``(iii) Effective date of waiver.--A waiver 
                        under clause (i) shall take effect on the 
                        earlier of--
                                    ``(I) the date on which the 
                                performance standard under subparagraph 
                                (C) takes effect; or
                                    ``(II) the date that is 270 days 
                                after the date of enactment of this 
                                subparagraph.
                    ``(C) Maintenance of toxic air pollutant emission 
                reductions.--
                            ``(i) In general.--As soon as practicable 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall--
                                    ``(I) promulgate regulations 
                                consistent with subparagraph (A) and 
                                paragraph (3)(B)(ii) to ensure that 
                                reductions of toxic air pollutant 
                                emissions achieved under the 
                                reformulated gasoline program under 
                                this section before the date of 
                                enactment of this subparagraph are 
                                maintained in States for which the 
                                Governor waives the oxygenate 
                                requirement under subparagraph (B)(i); 
                                or
                                    ``(II) determine that the 
                                requirement described in clause (iv)--
                                            ``(aa) is consistent with 
                                        the bases for a performance 
                                        standard described in clause 
                                        (ii); and
                                            ``(bb) shall be deemed to 
                                        be the performance standard 
                                        under clause (ii) and shall be 
                                        applied in accordance with 
                                        clause (iii).
                            ``(ii) Performance standard.--The 
                        Administrator, in regulations promulgated under 
                        clause (i)(I), shall establish an annual 
                        average performance standard based on--
                                    ``(I) compliance survey data;
                                    ``(II) the annual aggregate 
                                reductions in emissions of toxic air 
                                pollutants achieved under the 
                                reformulated gasoline program during 
                                calendar years 1998 and 1999, 
                                determined on the basis of the volume 
                                of reformulated gasoline containing 
                                methyl tertiary butyl ether that is 
                                sold throughout the United States; and
                                    ``(III) such other information as 
                                the Administrator determines to be 
                                appropriate.
                            ``(iii) Applicability.--
                                    ``(I) In general.--The performance 
                                standard under clause (ii) shall be 
                                applied on an annual average refinery-
                                by-refinery basis to all reformulated 
                                gasoline that is sold or introduced 
                                into commerce by the refinery in a 
                                State for which the Governor waives the 
                                oxygenate requirement under 
                                subparagraph (B)(i).
                                    ``(II) More stringent 
                                requirements.--The performance standard 
under clause (ii) shall not apply to the extent that any requirement 
under section 202(l) is more stringent than the performance standard.
                                    ``(III) State standards.--The 
                                performance standard under clause (ii) 
                                shall not apply in any State that has 
                                received a waiver under section 209(b).
                                    ``(IV) Credit program.--The 
                                Administrator shall provide for the 
                                granting of credits for exceeding the 
                                performance standard under clause (ii) 
                                in the same manner as provided in 
                                paragraph (7).
                            ``(iv) Statutory performance standard.--
                                    ``(I) In general.--Subject to 
                                subclause (III), if the regulations 
                                under clause (i)(I) have not been 
                                promulgated by the date that is 270 
                                days after the date of enactment of 
                                this subparagraph, the requirement 
                                described in subclause (II) shall be 
                                deemed to be the performance standard 
                                under clause (ii) and shall be applied 
                                in accordance with clause (iii).
                                    ``(II) Toxic air pollutant 
                                emissions.--The aggregate emissions of 
                                toxic air pollutants from baseline 
                                vehicles when using reformulated 
                                gasoline shall be 27.5 percent below 
                                the aggregate emissions of toxic air 
                                pollutants from baseline vehicles when 
                                using baseline gasoline.
                                    ``(III) Subsequent regulations.--
                                The Administrator may modify the 
                                performance standard established under 
                                subclause (I) through promulgation of 
                                regulations under clause (i)(I).''.

SEC. 3. SALE OF GASOLINE CONTAINING MTBE.

    Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is 
amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``fuel or fuel additive or'' after 
                ``Administrator any''; and
                    (B) by striking ``air pollution which'' and 
                inserting ``air pollution, or water pollution, that'';
            (2) in paragraph (4)(B), by inserting ``or water quality 
        protection,'' after ``emission control,''; and
            (3) by adding at the end the following:
            ``(5) Determination by the administrator whether to ban use 
        of mtbe.--
                    ``(A) In general.--Not later than 4 years after the 
                date of enactment of this paragraph, the Administrator 
                shall ban use of methyl tertiary butyl ether in 
                gasoline unless the Administrator determines that the 
                use of methyl tertiary butyl ether in accordance with 
                paragraph (6) poses no substantial risk to water 
                quality, air quality, or human health.
                    ``(B) Regulations concerning phase-out.--The 
                Administrator may establish by regulation a schedule to 
                phase out the use of methyl tertiary butyl ether in 
                gasoline during the period preceding the effective date 
                of the ban under subparagraph (A).
            ``(6) Limitations on sale of gasoline containing mtbe.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the Administrator makes the determination described in 
                paragraph (5), for the fourth full calendar year that 
                begins after the date of enactment of this paragraph 
                and each calendar year thereafter--
                            ``(i) the quantity of gasoline sold or 
                        introduced into commerce during the calendar 
                        year by a refiner, blender, or importer of 
                        gasoline shall contain on average not more than 
                        1 percent by volume methyl tertiary butyl 
                        ether; and
                            ``(ii) no person shall sell or introduce 
                        into commerce any gasoline that contains more 
                        than a specified percentage by volume methyl 
                        tertiary butyl ether, as determined by the 
                        Administrator by regulation.
                    ``(B) Regulations concerning trading.--
                            ``(i) In general.--The Administrator may 
                        promulgate regulations that provide for the 
                        granting of an appropriate amount of credits to 
                        a person that refines, blends, or imports, and 
                        certifies to the Administrator, gasoline or a 
                        slate of gasoline that has a methyl tertiary 
                        butyl ether content that is less than the 
                        maximum methyl tertiary butyl ether content 
                        specified in subparagraph (A)(i).
                            ``(ii) Use of credits.--The regulations 
                        promulgated under clause (i) shall provide that 
                        a person that is granted credits may use the 
                        credits, or transfer all or a portion of the 
                        credits to another person, for the purpose of 
                        complying with the maximum methyl tertiary 
                        butyl ether content requirement specified in 
                        subparagraph (A)(i).
                            ``(iii) Maximum annual limitation.--The 
                        regulations promulgated under clause (i) shall 
                        ensure that the total quantity of gasoline sold 
                        or introduced into commerce during any calendar 
                        year by all refiners, blenders, or importers 
                        contains on average not more than 1 percent by 
                        volume methyl tertiary butyl ether.
                    ``(C) Temporary waiver of limitations.--
                            ``(i) In general.--If the Administrator, in 
                        consultation with the Secretary of Energy, 
finds, on the Administrator's own motion or on petition of any person, 
that there is an insufficient domestic capacity to produce or import 
gasoline, the Administrator may, in accordance with section 307, 
temporarily waive the limitations imposed under subparagraph (A).
                            ``(ii) Duration of reduction.--
                                    ``(I) In general.--A waiver under 
                                clause (i) shall remain in effect for a 
                                period of 15 days unless the 
                                Administrator, in consultation with the 
                                Secretary of Energy, finds, before the 
                                end of that period, that there is 
                                sufficient domestic capacity to produce 
                                or import gasoline.
                                    ``(II) Extension.--Upon the 
                                expiration of the 15-day period under 
                                subclause (I), the waiver may be 
                                extended for an additional 15-day 
                                period in accordance with clause (i).
                            ``(iii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted under clause (i) within 7 days after 
                        the date of receipt of the petition.
                            ``(iv) Inapplicability of certain 
                        requirements.--Section 307(d) of this Act and 
                        sections 553 through 557 of title 5, United 
                        States Code, shall not apply to any action on a 
                        petition submitted under clause (i).
                            ``(v) State authority.--At the option of a 
                        State, a waiver under clause (i) shall not 
                        apply to any area with respect to which the 
                        State has exercised authority under any other 
                        provision of law (including subparagraph (D)) 
                        to limit the sale or use of methyl tertiary 
                        butyl ether.
                    ``(D) State petitions to eliminate use of mtbe.--
                            ``(i) In general.--A State may submit to 
                        the Administrator a petition requesting 
                        authority to eliminate the use of methyl 
                        tertiary butyl ether in gasoline sold or 
                        introduced into commerce in the State in order 
                        to protect air quality, water quality, or human 
                        health.
                            ``(ii) Deadline for action on petitions.--
                        The Administrator shall grant or deny any 
                        petition submitted under clause (i) within 180 
                        days after the date of receipt of the 
                        petition.''.

SEC. 4. CONVENTIONAL GASOLINE.

    (a) In General.--Section 211(k)(1) of the Clean Air Act (42 U.S.C. 
7545(k)(1)) (as amended by section 2) is amended by adding at the end 
the following:
                    ``(D) Conventional gasoline.--
                            ``(i) In general.--Not later than October 
                        1, 2007--
                                    ``(I) the Administrator shall 
                                determine whether the use of 
                                conventional gasoline during the period 
                                of calendar years 2005 and 2006 
                                resulted in a greater volume of 
                                emissions of criteria air pollutants 
                                listed under section 108, and 
                                precursors of those pollutants, 
                                determined on the basis of a weighted 
                                average of those pollutants and 
                                precursors, than the volume of such 
                                emissions during the period of calendar 
                                years 1998 and 1999; and
                                    ``(II) if the Administrator 
                                determines that a significant increase 
                                in emissions occurred, the 
                                Administrator shall promulgate such 
                                regulations concerning the use of 
                                conventional gasoline as are 
                                appropriate to eliminate that increase.
                            ``(ii) Applicability to certain states.--
                        The Administrator shall make the determination 
                        under clause (i)(I) without regard to, and the 
                        regulations promulgated under clause (i)(II) 
                        shall not apply to, any State that has received 
                        a waiver under section 209(b).''.
    (b) Elimination of Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraph (5) as paragraph (4).

SEC. 5. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b)(2) of the Clean Air Act (42 U.S.C. 7545(b)(2)) is 
amended--
            (1) by striking ``may also'' and inserting ``shall, on a 
        regular basis,''; and
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) to conduct tests to determine potential 
                public health and environmental effects of the fuel or 
                additive (including carcinogenic, teratogenic, or 
                mutagenic effects); and''.

SEC. 6. COMPREHENSIVE FUEL STUDY.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n) the following:
    ``(o) Comprehensive Fuel Study.--
            ``(1) In general.--Not later than 5 years after the date of 
        enactment of this paragraph and every 5 years thereafter, the 
        Administrator shall submit to Congress a report--
                    ``(A) describing reductions in emissions of 
                criteria air pollutants listed under section 108, or 
                precursors of those pollutants, that result from 
                implementation of this section;
                    ``(B) describing reductions in emissions of toxic 
                air pollutants that result from implementation of this 
                section;
                    ``(C) in consultation with the Secretary of Energy, 
                describing reductions in greenhouse gas emissions that 
                result from implementation of this section; and
                    ``(D)(i) describing regulatory options to achieve 
                reductions in the risk to public health and the 
                environment posed by fuels and fuel additives--
                            ``(I) taking into account the production, 
                        handling, and consumption of the fuels and fuel 
                        additives; and
                            ``(II) focusing on options that reduce the 
                        use of compounds or associated emission 
                        products that pose the greatest risk; and
                    ``(ii) making recommendations concerning any 
                statutory changes necessary to implement the regulatory 
                options described under clause (i).
            ``(2) Life cycle emissions analysis.--In determining 
        criteria air pollutant and greenhouse gas emission reductions 
        under paragraph (1), the Administrator shall take into account 
        the emissions resulting from the various fuels and fuel 
        additives used in the implementation of this section over the 
        entire life cycle of the fuels and fuel additives.''.

SEC. 7. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient domestic 
                        capacity to produce reformulated gasoline.--
                        If'';
            (3) in subparagraph (A)(ii) (as so redesignated)--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause (i)''; and
                    (B) in the second sentence, by striking ``this 
                paragraph'' and inserting ``this subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Nonclassified areas.--
                            ``(i) In general.--In accordance with 
                        section 110, a State may submit to the 
                        Administrator, and the Administrator may 
                        approve, a State implementation plan revision 
                        that provides for application of the 
                        prohibition specified in paragraph (5) in any 
                        portion of the State that is not a covered area 
                        or an area referred to in subparagraph (A)(i).
                            ``(ii) Period of effectiveness.--Under 
                        clause (i), the State implementation plan shall 
                        establish a period of effectiveness for 
                        applying the prohibition specified in paragraph 
                        (5) to a portion of a State that--
                                    ``(I) commences not later than 1 
                                year after the date of approval by the 
                                Administrator of the State 
                                implementation plan; and
                                    ``(II) ends not earlier than 4 
                                years after the date of commencement 
                                under subclause (I).''.

SEC. 8. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of LUST Funds for Remediation of MTBE Contamination.--
Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 6991b(h)) is 
amended--
            (1) in paragraph (7)(A), by striking ``paragraphs (1) and 
        (2) of this subsection,'' and inserting ``paragraphs (1), (2), 
        and (12),''; and
            (2) by adding at the end the following:
            ``(12) Remediation of mtbe contamination.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under subparagraph (B) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether that presents a risk to 
                human health, welfare, or the environment.
                    ``(B) Applicable authority.--Subparagraph (A) shall 
                be carried out--
                            ``(i) in accordance with paragraph (2); and
                            ``(ii) in the case of a State, in a manner 
                        consistent with a cooperative agreement entered 
                        into by the Administrator and the State under 
                        paragraph (7).
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated from the Leaking 
Underground Storage Tank Trust Fund to carry out subparagraph (A) 
$200,000,000 for fiscal year 2001, to remain available until 
expended.''.
    (b) Release Prevention.--Subtitle I of the Solid Waste Disposal Act 
(42 U.S.C. 6991 et seq.) is amended--
            (1) by redesignating section 9010 as section 9011; and
            (2) by inserting after section 9009 the following:

``SEC. 9010. RELEASE PREVENTION.

    ``(a) Implementation of Preventative Measures.--The Administrator 
(or a State pursuant to section 9003(h)(7)) may use funds appropriated 
from the Leaking Underground Storage Tank Trust Fund for--
            ``(1) necessary expenses directly related to the 
        implementation of section 9003(h);
            ``(2) enforcement of--
                    ``(A) this subtitle;
                    ``(B) a State program approved under section 9004; 
                or
                    ``(C) State requirements regulating underground 
                storage tanks that are similar or identical to this 
                subtitle; and
            ``(3) inspection of underground storage tanks.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated from the Leaking Underground Storage Tank Trust Fund to 
carry out subsection (a)--
            ``(1) $50,000,000 for fiscal year 2001; and
            ``(2) $30,000,000 for each of fiscal years 2002 through 
        2005.''.
    (c) Technical Amendments.--
            (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
        prec. 6901) is amended by striking the item relating to section 
        9010 and inserting the following:

``Sec. 9010. Release prevention.
``Sec. 9011. Authorization of appropriations.''.
            (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
        U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
        inserting ``substances''.
            (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
        U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and 
        (d) of this section'' and inserting ``subsections (c) and 
        (d)''.
            (4) Section 9004(a) of the Solid Waste Disposal Act (42 
        U.S.C. 6991c(a)) is amended in the first sentence by striking 
        ``referred to'' and all that follows and inserting ``referred 
        to in subparagraph (A) or (B), or both, of section 9001(2).''.
            (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
        6991d) is amended--
                    (A) in subsection (a), by striking ``study taking'' 
                and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking ``relevent'' 
                and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting ``Environmental''.
                                 <all>
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