II

106TH CONGRESS

2D SESSION S. 2971

To amend the Clean Air Act to phase out the use of methyl tertiary butyl

ether in fuels or fuel additives, to promote the use of renewable fuels,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 27, 2000

Mr. HARKIN 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 phase out the use of methyl

tertiary butyl ether in fuels or fuel additives, to promote

the use of renewable fuels, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Clean and Renewable

5 Fuels Act of 2000’’.
2

•S 2971 IS

1 SEC. 2. USE AND CLEANUP OF METHYL TERTIARY BUTYL

2 ETHER.

3 (a) IN GENERAL.—Section 211(c) of the Clean Air

4 Act (42 U.S.C. 7545(c)) is amended by adding at the end

5 the following:

6 ‘‘(5) PROHIBITION ON METHYL TERTIARY

7 BUTYL ETHER AND OTHER ETHER COMPOUNDS.—

8 ‘‘(A) SPECIFIED NONATTAINMENT

9 AREAS.—

10 ‘‘(i) IN GENERAL.—Effective begin11 ning January 1, 2001, a person shall not

12 sell or dispense to ultimate consumers any

13 fuel or fuel additive containing methyl ter14 tiary butyl ether in an area of the United

15 States other than an area described in

16 clause (ii).

17 ‘‘(ii) AREAS.—An area described in

18 this clause is an area that is a specified

19 nonattainment area—

20 ‘‘(I) that is required to meet the

21 oxygen content requirement for refor22 mulated gasoline established under

23 subsection (k); and

24 ‘‘(II) in which methyl tertiary

25 butyl ether was used to meet the oxy-
3

•S 2971 IS

1 gen content requirement before Janu2 ary 1, 2000.

3 ‘‘(B) INTERIM PERIOD OF USE OF MTBE IN

4 A FUEL OR FUEL ADDITIVE.—

5 ‘‘(i) PHASED REDUCTION.—

6 ‘‘(I) IN GENERAL.—The Admin7 istrator shall promulgate regulations

8 to require—

9 ‘‘(aa) during the 1-year pe10 riod beginning on the date that is

11 1 year after the date of enactment of this paragraph, a 1 12 ⁄3 re13 duction in the quantity of methyl

14 tertiary butyl ether that may be

15 sold or dispensed for use in a

16 fuel or fuel additive;

17 ‘‘(bb) during the 1-year pe18 riod beginning on the date that is

19 2 years after the date of enactment of this paragraph, a 2 20 ⁄3 re21 duction in the quantity of methyl

22 tertiary butyl ether that may be

23 sold or dispensed for use in a

24 fuel or fuel additive; and
4

•S 2971 IS

1 ‘‘(cc) that in no area does

2 the quantity of methyl tertiary

3 butyl ether sold or dispensed for

4 use in a fuel or fuel additive in5 crease.

6 ‘‘(II) BASIS FOR REDUCTIONS.—

7 Reductions under subclause (I) shall

8 be based on the quantity of methyl

9 tertiary butyl ether sold or dispensed

10 for use in a fuel or fuel additive in the

11 United States during the 1-year pe12 riod ending on the date of enactment

13 of this paragraph.

14 ‘‘(III) EQUITABLE TREAT15 MENT.—The regulations promulgated

16 by the Administrator under subclause

17 (I) shall, to the maximum extent prac18 ticable, provide equitable treatment—

19 ‘‘(aa) on a geographical

20 basis; and

21 ‘‘(bb) among fuel manufac22 turers, refiners, distributors, and

23 retailers.

24 ‘‘(IV) TRADING OF AUTHORIZA25 TIONS TO SELL OR DISPENSE
5

•S 2971 IS

1 MTBE.—To facilitate the most orderly

2 and efficient reduction in the use of

3 methyl tertiary butyl ether in a fuel or

4 fuel additive, the regulations promul5 gated by the Administrator under sub6 clause (I) may allow for persons sub7 ject to the regulations to sell to and

8 purchase from each other authoriza9 tions to sell or dispense methyl ter10 tiary butyl ether for use in a fuel or

11 fuel additive.

12 ‘‘(ii) LABELING.—

13 ‘‘(I) IN GENERAL.—The Admin14 istrator shall promulgate regulations

15 that require any person selling or dis16 pensing gasoline that contains methyl

17 tertiary butyl ether at retail promi18 nently to label the gasoline dispensing

19 system for the gasoline with a

20 notice—

21 ‘‘(aa) stating that the gaso22 line contains methyl tertiary

23 butyl ether; and

24 ‘‘(bb) providing such infor25 mation concerning the human
6

•S 2971 IS

1 health and environmental risks

2 associated with methyl tertiary

3 butyl ether as the Administrator

4 determines to be appropriate.

5 ‘‘(II) PERIOD OF EFFECTIVE6 NESS.—The regulations promulgated

7 under subclause (I) shall be effective

8 during the period—

9 ‘‘(aa) beginning as soon as

10 practicable, but not later than 60

11 days, after the date of enactment

12 of this paragraph; and

13 ‘‘(bb) ending on the date

14 that is 3 years after the date of

15 enactment of this paragraph.

16 ‘‘(C) PROHIBITION ON USE OF MTBE IN A

17 FUEL OR FUEL ADDITIVE.—Effective beginning

18 on the date that is 3 years after the date of en19 actment of this paragraph, a person shall not

20 manufacture, introduce into commerce, offer for

21 sale, sell, or dispense a fuel or fuel additive con22 taining methyl tertiary butyl ether or any other

23 ether compound.

24 ‘‘(D) WAIVER.—The Administrator may by

25 regulation waive the prohibition under subpara-
7

•S 2971 IS

1 graph (C) with respect to an ether compound

2 other than methyl tertiary butyl ether if the Ad3 ministrator determines that the use of the ether

4 compound in a fuel or fuel additive will not

5 pose a significant risk to human health or the

6 environment.

7 ‘‘(E) AREAS OF MTBE CONTAMINATION.—

8 If the Administrator finds that methyl tertiary

9 butyl ether is contaminating or posing a sub10 stantial risk of contamination of soil, ground

11 water, or surface water in an area, the Admin12 istrator may take such action as is necessary to

13 protect human health and the environment in

14 the area, including requiring a more rapid re15 duction (including immediate termination) of

16 the quantity of methyl tertiary butyl ether sold

17 or dispensed for use in a fuel or fuel additive

18 in the area than required under subparagraph

19 (A) or (B).

20 ‘‘(F) STATE AUTHORITY TO REGULATE

21 MTBE.—Notwithstanding any other provision of

22 law, a State may impose such restrictions, in23 cluding a prohibition, on the manufacture, sale,

24 or use of methyl tertiary butyl ether in a fuel

25 or fuel additive as the State determines to be
8

•S 2971 IS

1 appropriate to protect human health and the

2 environment.’’.

3 (b) REMEDIAL ACTION CONCERNING MTBE CON4 TAMINATION.—

5 (1) UNDERGROUND STORAGE TANKS.—Section

6 9003(h) of the Solid Waste Disposal Act (42 U.S.C.

7 6991b(h)) is amended by striking paragraph (3) and

8 inserting the following:

9 ‘‘(3) PRIORITY.—In carrying out a corrective

10 action under this subsection, or in issuing an order

11 that requires an owner or operator to carry out a

12 corrective action under this subsection, the Adminis13 trator (or a State under paragraph (7)) shall give

14 priority to a release of petroleum from an under15 ground storage tank that poses the greatest threat

16 to human health, human welfare, and the environ17 ment.’’.

18 (2) CLEANUP GUIDELINES.—Section 1442 of

19 the Safe Drinking Water Act (42 U.S.C. 300j–1) is

20 amended by adding at the end the following:

21 ‘‘(f) CLEANUP GUIDELINES FOR MTBE.—

22 ‘‘(1) IN GENERAL.—The Administrator—

23 ‘‘(A) shall develop technical guidelines to

24 assist States, local governments, private land25 owners, and other interested parties in the in-
9

•S 2971 IS

1 vestigation and cleanup of methyl tertiary butyl

2 ether in soil or ground water; and

3 ‘‘(B) may enter into cooperative agree4 ments with the United States Geological Sur5 vey, the Department of Agriculture, States,

6 local governments, private landowners, and

7 other interested parties—

8 ‘‘(i) to establish voluntary pilot

9 projects for the cleanup of methyl tertiary

10 butyl ether and the protection of private

11 wells from contamination by methyl ter12 tiary butyl ether; and

13 ‘‘(ii) to provide technical assistance in

14 carrying out such projects.

15 ‘‘(2) PRIVATE WELLS.—This subsection does

16 not authorize the issuance of guidance or regulations

17 concerning the use or protection of private wells.’’.

18 (3) STATE SOURCE WATER ASSESSMENT PRO19 GRAMS.—Section 1453(a) of the Safe Drinking

20 Water Act (42 U.S.C. 300j–13(a)) is amended by

21 adding at the end the following:

22 ‘‘(8) MTBE CONTAMINATION.—

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

24 shall amend the guidance under this subsection

25 to require that State source water assessment
10

•S 2971 IS

1 programs be revised to give high priority to

2 ground water areas and aquifers that have been

3 contaminated, or are most vulnerable to con4 tamination, by methyl tertiary butyl ether.

5 ‘‘(B) APPROVAL OF REVISIONS.—Each re6 vision under subparagraph (A) shall be sub7 mitted and approved or disapproved by the Ad8 ministrator in accordance with the schedule de9 scribed in paragraph (3).’’.

10 SEC. 3. OXYGEN CONTENT REQUIREMENT UNDER REFOR11 MULATED GASOLINE PROGRAM.

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

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

14 (1) in the first sentence—

15 (A) by striking ‘‘Within 1 year after the

16 enactment of the Clean Air Act Amendments of

17 1990,’’ and inserting the following:

18 ‘‘(A) IN GENERAL.—Not later than No19 vember 15, 1991,’’; and

20 (B) by inserting before the period at the

21 end the following: ‘‘and opt-in areas under

22 paragraph (6)’’;

23 (2) in the second sentence—

24 (A) by inserting ‘‘and other’’ after ‘‘volatile

25 organic’’; and
11

•S 2971 IS

1 (B) by inserting ‘‘and precursors of toxic

2 air pollutants’’ after ‘‘toxic air pollutants’’; and

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

4 ‘‘(B) WAIVER OF PER-GALLON OXYGEN

5 CONTENT REQUIREMENT.—

6 ‘‘(i) PROCEDURE FOR SUBMISSION OF

7 PETITIONS.—The Administrator shall pro8 mulgate regulations that establish a proce9 dure providing for the submission of peti10 tions for—

11 ‘‘(I) a waiver, with respect to an

12 area, of any per-gallon oxygen content

13 requirement established under para14 graph (2)(B) or (3)(A)(v); and

15 ‘‘(II) the averaging, with respect

16 to an area, of the oxygen content re17 quirement established under para18 graphs (2)(B) and (3)(A)(v) over such

19 period of time, not to exceed 1 year,

20 as is determined appropriate by the

21 Administrator.

22 ‘‘(ii) CRITERIA FOR GRANTING OF PE23 TITIONS.—After consultation with the Sec24 retary of Energy and the Secretary of Ag25 riculture, the Administrator shall grant a
12

•S 2971 IS

1 petition submitted under clause (i) if the

2 Administrator finds that granting the peti3 tion is necessary—

4 ‘‘(I) to avoid a shortage or dis5 ruption in supply of reformulated gas6 oline;

7 ‘‘(II) to avoid the payment by

8 consumers of excessive prices for re9 formulated gasoline; or

10 ‘‘(III) to facilitate the attainment

11 by an area of a national primary am12 bient air quality standard.

13 ‘‘(iii) MAINTENANCE OF HUMAN

14 HEALTH AND ENVIRONMENTAL BENE15 FITS.—The regulations promulgated under

16 clause (i) shall ensure that the human

17 health and environmental benefits of refor18 mulated gasoline are fully maintained dur19 ing the period of any waiver of a per-gallon

20 oxygen content requirement.’’.

21 (b) TEMPORARY REDUCTION OF OXYGEN CONTENT

22 REQUIREMENT.—Section 211(k) of the Clean Air Act (42

23 U.S.C. 7545(k)) is amended—

24 (1) by redesignating paragraph (10) as para25 graph (11); and
13

•S 2971 IS

1 (2) by inserting after paragraph (9) the fol2 lowing:

3 ‘‘(10) TEMPORARY REDUCTION OF OXYGEN

4 CONTENT REQUIREMENT.—

5 ‘‘(A) IN GENERAL.—If, upon petition of a

6 State, the Secretary of Energy, with the con7 currence of the Secretary of Agriculture, finds

8 that, with respect to any area, there is, as a re9 sult of unforeseeable or unavoidable cir10 cumstances, an insufficient supply of

11 oxygenates to meet the oxygen content require12 ment of paragraphs (2)(B) and (3)(A)(v), the

13 Administrator may, in accordance with section

14 307, promulgate regulations temporarily reduc15 ing (including waiving) the oxygen content re16 quirement, with respect to the area, to the ex17 tent necessary to ensure an adequate supply of

18 reformulated gasoline.

19 ‘‘(B) DURATION OF REDUCTION.—

20 ‘‘(i) IN GENERAL.—A temporary re21 duction in the oxygen content requirement

22 under subparagraph (A) shall remain in ef23 fect for a period of 90 days unless the Sec24 retary of Energy finds, before the end of
14

•S 2971 IS

1 that period, that a sufficient supply of

2 oxygenates exists.

3 ‘‘(ii) EXTENSION.—Upon the expira4 tion of the 90-day period under clause (i),

5 the temporary reduction in the oxygen con6 tent requirement may be extended for an

7 additional 90-day period in accordance

8 with subparagraph (A).

9 ‘‘(C) MAINTENANCE OF HUMAN HEALTH

10 AND ENVIRONMENTAL BENEFITS.—The regula11 tions promulgated under subparagraph (A)

12 shall ensure that the human health and envi13 ronmental benefits of reformulated gasoline are

14 fully maintained during the period of the tem15 porary reduction in the oxygen content require16 ment.’’.

17 SEC. 4. LIMITATIONS ON AROMATICS AND OLEFINS IN RE18 FORMULATED GASOLINE.

19 Section 211(k)(3)(A) of the Clean Air Act (42 U.S.C.

20 7545(k)(3)(A)) is amended—

21 (1) by striking clause (ii) and inserting the fol22 lowing:

23 ‘‘(ii) AROMATICS.—

24 ‘‘(I) IN GENERAL.—The aromatic

25 hydrocarbon content of the reformu-
15

•S 2971 IS

1 lated gasoline shall not exceed 22 per2 cent by volume.

3 ‘‘(II) AVERAGE.—The average

4 aromatic hydrocarbon content of the

5 reformulated gasoline shall not exceed

6 the average aromatic hydrocarbon

7 content of reformulated gasoline sold

8 in covered areas for use in baseline

9 vehicles when using reformulated gas10 oline during either calendar year 1999

11 or calendar year 2000.

12 ‘‘(III) MAXIMUM PER GALLON.—

13 No gallon of reformulated gasoline

14 shall have an aromatic hydrocarbon

15 content in excess of 30 percent.’’; and

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

17 ‘‘(vi) OLEFINS.—

18 ‘‘(I) IN GENERAL.—The olefin

19 content of the reformulated gasoline

20 shall not exceed 8 percent by volume.

21 ‘‘(II) AVERAGE.—The average

22 olefin content of the reformulated gas23 oline shall not exceed the average

24 olefin content of reformulated gasoline

25 sold in covered areas for use in base-
16

•S 2971 IS

1 line vehicles when using reformulated

2 gasoline during either calendar year

3 1999 or calendar year 2000.

4 ‘‘(III) MAXIMUM PER GALLON.—

5 No gallon of reformulated gasoline

6 shall have an olefin content in excess

7 of 10 percent.’’.

8 SEC. 5. MODIFICATION OF PERFORMANCE STANDARDS.

9 Section 211(k)(3)(B) of the Clean Air Act (42 U.S.C.

10 7545(k)(3)(B)) is amended—

11 (1) in the last sentence of clause (i), by insert12 ing before the period at the end the following: ‘‘,

13 and, to the maximum extent practicable using avail14 able science, determined on the basis of the ozone15 forming potential of volatile organic compounds and

16 taking into account the effect on ozone formation of

17 reducing carbon monoxide emissions’’; and

18 (2) in clause (ii)—

19 (A) in the first sentence, by inserting ‘‘, or

20 precursors of toxic air pollutants,’’ after ‘‘toxic

21 air pollutants’’ each place it appears;

22 (B) in the second sentence, by inserting

23 before the period at the end the following: ‘‘, or

24 precursors of toxic air pollutants’’;
17

•S 2971 IS

1 (C) in the third sentence, by inserting ‘‘, or

2 precursors,’’ after ‘‘such air pollutants’’; and

3 (D) in the last sentence, by inserting be4 fore the period at the end the following: ‘‘, and,

5 to the maximum extent practicable using avail6 able science, determined on the basis of the rel7 ative toxicity or carcinogenic potency, whichever

8 is more protective of human health and the en9 vironment’’.

10 SEC. 6. ANTI-BACKSLIDING.

11 (a) IN GENERAL.—Section 211(k)(3)(B) of the Clean

12 Air Act (42 U.S.C. 7545(k)(3)(B)) is amended—

13 (1) in the last sentence, by striking ‘‘Any reduc14 tion’’ and inserting the following:

15 ‘‘(iii) TREATMENT OF GREATER RE16 DUCTIONS.—Any reduction’’; and

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

18 ‘‘(iv) ANTI-BACKSLIDING PROVI19 SION.—

20 ‘‘(I) IN GENERAL.—Not later

21 than October 1, 2000, the Adminis22 trator shall revise performance stand23 ards under this subparagraph as nec24 essary to ensure that—
18

•S 2971 IS

1 ‘‘(aa) the ozone-forming po2 tential, taking into account all

3 ozone precursors (including vola4 tile organic compounds, oxides of

5 nitrogen, and carbon monoxide),

6 of the aggregate emissions during

7 the high ozone season (as deter8 mined by the Administrator)

9 from baseline vehicles when using

10 reformulated gasoline does not

11 exceed the ozone-forming poten12 tial of the aggregate emissions

13 during the high ozone season

14 from baseline vehicles when using

15 reformulated gasoline that com16 plies with the regulations that

17 were in effect on January 1,

18 2000, and were applicable to re19 formulated gasoline sold in cal20 endar year 2000 and subsequent

21 calendar years; and

22 ‘‘(bb) the aggregate emis23 sions of the pollutants specified

24 in subclause (II), or precursors of

25 those pollutants, from baseline
19

•S 2971 IS

1 vehicles when using reformulated

2 gasoline do not exceed the aggre3 gate emissions of those pollut4 ants, or precursors, from baseline

5 vehicles when using reformulated

6 gasoline that complies with the

7 regulations that were in effect on

8 January 1, 2000, and were appli9 cable to reformulated gasolines

10 sold in calendar year 2000 and

11 subsequent calendar years.

12 ‘‘(II) SPECIFIED POLLUTANTS.—

13 The pollutants specified in this sub14 clause are—

15 ‘‘(aa) toxic air pollutants,

16 categorized by degree of toxicity

17 and carcinogenic potency;

18 ‘‘(bb) particulate matter

19 (PM–10) and fine particulate

20 matter (PM–2.5);

21 ‘‘(cc) pollutants regulated

22 under section 108; and

23 ‘‘(dd) such other pollutants,

24 and precursors to pollutants, as

25 the Administrator determines by
20

•S 2971 IS

1 regulation should be controlled to

2 prevent the deterioration of air

3 quality and to achieve attainment

4 of a national ambient air quality

5 standard in 1 or more areas.

6 ‘‘(III) ADJUSTMENT FOR EMIS7 SIONS OF CARBON MONOXIDE.—

8 ‘‘(aa) IN GENERAL.—In car9 rying out subclause (I), the Ad10 ministrator shall adjust the per11 formance standard for emissions

12 of volatile organic compounds

13 under this subparagraph to ac14 count for emissions of carbon

15 monoxide that are greater than

16 or less than the carbon monoxide

17 baseline determined under item

18 (bb).

19 ‘‘(bb) CARBON MONOXIDE

20 BASELINE.—The carbon mon21 oxide baseline shall be equal to

22 the mass carbon monoxide emis23 sions achieved by reformulated

24 gasoline that contains 2 percent

25 oxygen by weight and meets the
21

•S 2971 IS

1 other performance standards

2 under this subparagraph.

3 ‘‘(IV) UPDATING OF BASELINE

4 VEHICLES.—Not later than 3 years

5 after the date of enactment of this

6 clause, the Administrator shall revise

7 the performance standards under this

8 subparagraph by redefining the term

9 ‘baseline vehicles’ as used in this

10 clause to mean vehicles representative

11 of vehicles (including off-road vehi12 cles) in use as of January 1, 2000.’’.

13 (b) REFORMULATED GASOLINE CARBON MONOXIDE

14 REDUCTION CREDIT.—Section 182(c)(2)(B) of the Clean

15 Air Act (42 U.S.C. 7511a(c)(2)(B)) is amended by adding

16 at the end the following: ‘‘An adjustment to the volatile

17 organic compound emission reduction requirements under

18 section 211(k)(3)(B)(iv) shall be credited toward the re19 quirement for VOC emissions reductions under this sub20 paragraph.’’.

21 SEC. 7. CERTIFICATION OF FUELS AS EQUIVALENT TO RE22 FORMULATED GASOLINE.

23 Section 211(k)(4)(B) of the Clean Air Act (42 U.S.C.

24 7545(k)(4)(B)) is amended—
22

•S 2971 IS

1 (1) by redesignating clauses (i) and (ii) as sub2 clauses (I) and (II), respectively, and indenting ap3 propriately to reflect the amendments made by this

4 section;

5 (2) by striking ‘‘The Administrator’’ and insert6 ing the following:

7 ‘‘(i) IN GENERAL.—The Adminis8 trator’’;

9 (3) in clause (i) (as designated by paragraph

10 (2))—

11 (A) in subclause (I) (as redesignated by

12 paragraph (1)), by striking ‘‘, and’’ and insert13 ing a semicolon;

14 (B) in subclause (II) (as redesignated by

15 paragraph (1))—

16 (i) by striking ‘‘achieve equivalent’’

17 and inserting the following: ‘‘achieve—

18 ‘‘(aa) equivalent’’;

19 (ii) by striking the period at the end

20 and inserting ‘‘; or’’; and

21 (iii) by adding at the end the fol22 lowing:

23 ‘‘(bb) combined reductions

24 in emissions of ozone forming

25 volatile organic compounds and
23

•S 2971 IS

1 carbon monoxide that result in a

2 reduction in ozone concentration,

3 as provided in clause (ii)(I), that

4 is equivalent to or greater than

5 the reduction in ozone concentra6 tion achieved by a reformulated

7 gasoline meeting the applicable

8 requirements of paragraph (3);’’;

9 and

10 (C) by adding at the end the following:

11 ‘‘(III) achieve equivalent or

12 greater reductions in emissions of

13 toxic air pollutants, or precursors of

14 toxic air pollutants, than are achieved

15 by a reformulated gasoline meeting

16 the applicable requirements of para17 graph (3); and

18 ‘‘(IV) meet the requirements of

19 paragraph (3)(B)(iv).’’; and

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

21 ‘‘(ii) CARBON MONOXIDE CREDIT.—

22 ‘‘(I) IN GENERAL.—In deter23 mining whether a fuel formulation or

24 slate of fuel formulations achieves

25 combined reductions in emissions of
24

•S 2971 IS

1 ozone forming volatile organic com2 pounds and carbon monoxide in an

3 area that result in a reduction in

4 ozone concentration that is equivalent

5 to or greater than the reduction in

6 ozone concentration achieved by a re7 formulated gasoline meeting the appli8 cable requirements of paragraph (3)

9 in the area, the Administrator—

10 ‘‘(aa) shall consider, to the

11 extent appropriate, the change in

12 carbon monoxide emissions from

13 baseline vehicles attributable to

14 an oxygen content in the fuel for15 mulation or slate of fuel formula16 tions that exceeds any minimum

17 oxygen content requirement for

18 reformulated gasoline applicable

19 to the area; and

20 ‘‘(bb) may consider, to the

21 extent appropriate, the change in

22 carbon monoxide emissions de23 scribed in item (aa) from vehicles

24 other than baseline vehicles.
25

•S 2971 IS

1 ‘‘(II) OXYGEN CREDITS.—Any

2 excess oxygen content that is taken

3 into consideration in making a deter4 mination under subclause (I) may not

5 be used to generate credits under

6 paragraph (7)(A).

7 ‘‘(III) RELATION TO TITLE I.—

8 Any fuel formulation or slate of fuel

9 formulations that is certified as equiv10 alent or greater under this subpara11 graph, taking into consideration the

12 combined reductions in emissions of

13 volatile organic compounds and car14 bon monoxide, shall receive the same

15 volatile organic compounds reduction

16 credit for the purposes of subsections

17 (b)(1) and (c)(2)(B) of section 182 as

18 a fuel meeting the applicable require19 ments of paragraph (3).’’.

20 SEC. 8. ADDITIONAL OPT-IN AREAS UNDER REFORMU21 LATED GASOLINE PROGRAM.

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

23 7545(k)(6)) is amended—

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

25 Upon’’ and inserting the following:
26

•S 2971 IS

1 ‘‘(6) OPT-IN AREAS.—

2 ‘‘(A) CLASSIFIED AREAS.—

3 ‘‘(i) IN GENERAL.—Upon’’;

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

5 and inserting the following:

6 ‘‘(ii) EFFECT OF INSUFFICIENT DO7 MESTIC CAPACITY TO PRODUCE REFORMU8 LATED GASOLINE.—If’’;

9 (3) in subparagraph (A)(ii) (as so redesig10 nated)—

11 (A) in the first sentence, by striking ‘‘sub12 paragraph (A)’’ and inserting ‘‘clause (i)’’; and

13 (B) in the second sentence, by striking

14 ‘‘this paragraph’’ and inserting ‘‘this subpara15 graph’’; and

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

17 ‘‘(B) NONCLASSIFIED AREAS.—

18 ‘‘(i) IN GENERAL.—Upon the applica19 tion of the Governor of a State, the Ad20 ministrator shall apply the prohibition

21 specified in paragraph (5) in any area in

22 the State that is not a covered area or an

23 area referred to in subparagraph (A)(i).

24 ‘‘(ii) PUBLICATION OF APPLICA25 TION.—As soon as practicable after receipt
27

•S 2971 IS

1 of an application under clause (i), the Ad2 ministrator shall publish the application in

3 the Federal Register.’’.

4 SEC. 9. UPDATING OF BASELINE YEAR.

5 (a) IN GENERAL.—Section 211(k)(8) of the Clean

6 Air Act (42 U.S.C. 7545(k)(8)) is amended—

7 (1) by striking subparagraph (A) and inserting

8 the following:

9 ‘‘(A) REGULATIONS.—

10 ‘‘(i) EMISSIONS.—The Administrator

11 shall promulgate regulations applicable to

12 each refiner, blender, or importer of gaso13 line ensuring that gasoline sold or intro14 duced into commerce by the refiner, blend15 er, or importer (other than reformulated

16 gasoline subject to the requirements of

17 paragraph (1)) does not result in average

18 per gallon emissions of—

19 ‘‘(I) volatile organic compounds;

20 ‘‘(II) oxides of nitrogen;

21 ‘‘(III) carbon monoxide;

22 ‘‘(IV) toxic air pollutants;

23 ‘‘(V) particulate matter (PM–10)

24 or fine particulate matter (PM–2.5);

25 or
28

•S 2971 IS

1 ‘‘(VI) any precursor of a pollut2 ant specified in subclauses (I) through

3 (V);

4 in excess of such emissions of such pollut5 ants attributable to gasoline sold or intro6 duced into commerce in calendar year

7 1999 or calendar year 2000, in whichever

8 occurred the lower of such emissions, by

9 that refiner, blender, or importer.

10 ‘‘(ii) MEASUREMENT OF AVERAGE

11 PER GALLON EMISSIONS.—For the pur12 poses of clause (i), average per gallon

13 emissions shall be measured on the basis

14 of—

15 ‘‘(I) mass; and

16 ‘‘(II) to the maximum extent

17 practicable using available science—

18 ‘‘(aa) ozone-forming poten19 tial;

20 ‘‘(bb) degree of toxicity; and

21 ‘‘(cc) carcinogenic potency.

22 ‘‘(iii) AROMATIC HYDROCARBON CON23 TENT AND OLEFIN CONTENT.—The Ad24 ministrator shall promulgate regulations

25 applicable to each refiner, blender, or im-
29

•S 2971 IS

1 porter of gasoline ensuring that gasoline

2 sold or introduced into commerce by the

3 refiner, blender, or importer (other than

4 reformulated gasoline subject to the re5 quirements of paragraph (1)) does not

6 have an aromatic hydrocarbon content or

7 olefin content in excess of such content of

8 gasoline sold or introduced into commerce

9 in calendar year 1999 or calendar year

10 2000, in whichever occurred the lower of

11 such content, by that refiner, blender, or

12 importer.’’;

13 (2) in subparagraph (C)—

14 (A) by striking ‘‘clauses (i) through (iv)’’

15 and inserting ‘‘subclauses (I) through (VI) of

16 subparagraph (A)(i)’’;

17 (B) by inserting ‘‘or volatile organic com18 pounds’’ after ‘‘nitrogen’’; and

19 (C) by striking ‘‘(on a mass basis)’’ and

20 inserting ‘‘(as measured in accordance with

21 subparagraph (A)(ii))’’; and

22 (3) in subparagraph (E)—

23 (A) by striking ‘‘calendar year 1990’’ and

24 inserting ‘‘calendar year 1999 or calendar year
30

•S 2971 IS

1 2000 (as determined under subparagraph

2 (A)(i))’’; and

3 (B) by striking ‘‘such 1990 gasoline’’ and

4 inserting ‘‘such 1999 or 2000 gasoline’’.

5 (b) REGULATIONS.—As soon as practicable after the

6 date of enactment of this Act, the Administrator of the

7 Environmental Protection Agency shall revise the regula8 tions promulgated under section 211(k) of the Clean Air

9 Act (42 U.S.C. 7545(k)) to reflect the amendments made

10 by subsection (a).

11 SEC. 10. RENEWABLE CONTENT OF GASOLINE AND DIESEL

12 FUEL.

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

14 (42 U.S.C. 7545) is amended—

15 (1) by redesignating subsection (o) as sub16 section (q); and

17 (2) by inserting after subsection (n) the fol18 lowing:

19 ‘‘(o) RENEWABLE CONTENT OF GASOLINE.—

20 ‘‘(1) IN GENERAL.—

21 ‘‘(A) REGULATIONS.—Not later than Sep22 tember 1, 2000, the Administrator shall pro23 mulgate regulations applicable to each refiner,

24 blender, or importer of gasoline to ensure that

25 gasoline sold or introduced into commerce in
31

•S 2971 IS

1 the United States by the refiner, blender, or im2 porter complies with the renewable content re3 quirements of this subsection.

4 ‘‘(B) RENEWABLE CONTENT REQUIRE5 MENTS.—

6 ‘‘(i) IN GENERAL.—All gasoline sold

7 or introduced into commerce in the United

8 States by a refiner, blender, or importer

9 shall contain, on a quarterly average basis,

10 a quantity of fuel derived from a renewable

11 source that is not less than the applicable

12 percentage by volume for the quarter.

13 ‘‘(ii) APPLICABLE PERCENTAGE.—For

14 the purposes of clause (i), the applicable

15 percentage for a quarter of a calendar year

16 shall be determined in accordance with the

17 following table:

Applicable percentage

of fuel derived from a

‘‘Calendar year: renewable source:

2000 ......................................................................................... 1.3

2001 ......................................................................................... 1.5

2002 ......................................................................................... 1.8

2003 ......................................................................................... 2.1

2004 ......................................................................................... 2.4

2005 ......................................................................................... 2.7

2006 ......................................................................................... 3.0

2007 ......................................................................................... 3.3

2008 ......................................................................................... 3.6

2009 ......................................................................................... 3.9

2010 and thereafter ................................................................. 4.2.

18 ‘‘(C) FUEL DERIVED FROM A RENEWABLE

19 SOURCE.—For the purposes of this subsection,
32

•S 2971 IS

1 a fuel shall be considered to be derived from a

2 renewable source if the fuel—

3 ‘‘(i) is produced from—

4 ‘‘(I) agricultural commodities,

5 agricultural products, or residues of

6 agricultural commodities or agricul7 tural products;

8 ‘‘(II) plant materials, including

9 grasses, fibers, wood, and wood resi10 dues;

11 ‘‘(III) dedicated energy crops and

12 trees;

13 ‘‘(IV) animal wastes, animal by14 products, and other materials of ani15 mal origin;

16 ‘‘(V) municipal wastes and refuse

17 derived from plant or animal sources;

18 and

19 ‘‘(VI) other biomass; and

20 ‘‘(ii) is used to replace or reduce the

21 quantity of fossil fuel present in a fuel

22 mixture used to operate a motor vehicle,

23 motor vehicle engine, nonroad vehicle, or

24 nonroad engine.

25 ‘‘(D) CREDIT PROGRAM.—
33

•S 2971 IS

1 ‘‘(i) IN GENERAL.—The regulations

2 promulgated under this subsection shall

3 provide for the generation of an appro4 priate amount of credits by a person that

5 refines, blends, or imports gasoline that

6 contains, on a quarterly average basis, a

7 quantity of fuel derived from a renewable

8 source that is greater than the quantity re9 quired under subparagraph (B).

10 ‘‘(ii) USE OF CREDITS.—The regula11 tions shall provide that a person that gen12 erates the credits may use the credits, or

13 transfer all or a portion of the credits to

14 another person, for the purpose of com15 plying with subparagraph (B).

16 ‘‘(iii) REGULATIONS TO PREVENT EX17 CESSIVE GEOGRAPHICAL CONCENTRA18 TION.—The Administrator, in consultation

19 with the Secretary of Energy and the Sec20 retary of Agriculture, may promulgate reg21 ulations governing the generation and

22 trading of credits described in clause (i) in

23 order to prevent excessive geographical

24 concentration in the use of fuel derived
34

•S 2971 IS

1 from a renewable source that would tend

2 unduly—

3 ‘‘(I) to affect the price, supply, or

4 distribution of such fuel;

5 ‘‘(II) to impede the development

6 of the renewable fuels industry; or

7 ‘‘(III) to otherwise interfere with

8 the purposes of this subsection.

9 ‘‘(2) 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 of paragraph (1)(B) with respect to

14 an area in whole or in part on petition by a

15 State—

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

17 Administrator, after public notice and op18 portunity for comment, that—

19 ‘‘(I) implementation of the re20 quirements would severely harm the

21 economy or environment of the area;

22 or

23 ‘‘(II) there is an inadequate do24 mestic supply or distribution capacity

25 with respect to fuel from renewable
35

•S 2971 IS

1 sources in the area to meet the re2 quirements of paragraph (1)(B); and

3 ‘‘(ii) only after a determination by the

4 Administrator that use of the credit pro5 gram described in paragraph (1)(D) would

6 not adequately alleviate the circumstances

7 on which the petition is based.

8 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad9 ministrator, in consultation with the Secretary

10 of Agriculture and the Secretary of Energy—

11 ‘‘(i) shall approve or deny a State pe12 tition for a waiver of the requirements of

13 paragraph (1)(B) within 180 days after

14 the date on which the petition is received;

15 but

16 ‘‘(ii) may extend that period for up to

17 60 additional days to provide for public no18 tice and opportunity for comment and for

19 consideration of the comments submitted.

20 ‘‘(C) TERMINATION OF WAIVERS.—A waiv21 er granted under subparagraph (A) shall termi22 nate on the earlier of—

23 ‘‘(i) the date on which the Adminis24 trator, in consultation with the Secretary

25 of Agriculture and the Secretary of En-
36

•S 2971 IS

1 ergy, determines that the reason for the

2 waiver no longer exists; or

3 ‘‘(ii) the date that is 1 year after the

4 date on which the waiver is granted.

5 ‘‘(D) RENEWAL OF WAIVERS.—A waiver

6 granted under subparagraph (A) may be re7 newed by the Administrator after consultation

8 with the Secretary of Agriculture and the Sec9 retary of Energy.

10 ‘‘(E) OXYGEN CONTENT WAIVERS.—The

11 grant or denial of a waiver under subsection

12 (k)(2)(B) shall not affect the requirements of

13 this subsection.

14 ‘‘(3) GUIDANCE FOR LABELING.—After con15 sultation with the Secretary of Agriculture and the

16 Secretary of Energy, the Administrator shall issue

17 guidance to the States for labeling, at the point of

18 retail sale—

19 ‘‘(A) the fuel derived from a renewable

20 source that is contained in the fuel sold; and

21 ‘‘(B) the major fuel additive components of

22 the fuel sold.

23 ‘‘(4) REPORTS TO CONGRESS.—Not less often

24 than every 3 years, the Administrator shall submit

25 to Congress a report—
37

•S 2971 IS

1 ‘‘(A) describing reductions in emissions of

2 criteria air pollutants listed under section 108

3 that result from implementation of this sub4 section;

5 ‘‘(B) in consultation with the Secretary of

6 Agriculture, describing—

7 ‘‘(i) the impact of implementation of

8 this subsection on—

9 ‘‘(I) the demand for farm com10 modities, biomass, and other materials

11 used for producing fuel derived from a

12 renewable source; and

13 ‘‘(II) the adequacy of food and

14 feed supplies; and

15 ‘‘(ii) the effect of implementation of

16 this subsection on farm income, employ17 ment, and economic growth, particularly in

18 rural areas; and

19 ‘‘(C) in consultation with the Secretary of

20 Energy—

21 ‘‘(i) describing greenhouse gas emis22 sion reductions that result from implemen23 tation of this subsection; and

24 ‘‘(ii) assessing the effect of implemen25 tation of this subsection on United States
38

•S 2971 IS

1 energy security and reliance on imported

2 petroleum.

3 ‘‘(p) RENEWABLE CONTENT OF DIESEL FUEL.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) REGULATIONS.—Not later than Sep6 tember 1, 2000, the Administrator shall pro7 mulgate regulations applicable to each refiner,

8 blender, or importer of diesel fuel to ensure

9 that the diesel fuel sold or introduced into com10 merce in the United States by the refiner,

11 blender, or importer complies with the renew12 able content requirements established by the

13 Administrator under this subsection.

14 ‘‘(B) RENEWABLE CONTENT REQUIRE15 MENTS.—

16 ‘‘(i) IN GENERAL.—All diesel fuel sold

17 or introduced into commerce in the United

18 States by a refiner, blender, or importer

19 shall contain, on a quarterly average basis,

20 a quantity of fuel derived from a renewable

21 source (as described in subsection

22 (o)(1)(C)) that is not less than the applica23 ble percentage by volume for the quarter.

24 ‘‘(ii) APPLICABLE PERCENTAGE.—For

25 the purposes of clause (i), the applicable
39

•S 2971 IS

1 percentage for a quarter of a calendar

2 year—

3 ‘‘(I) shall be established by the

4 Administrator;

5 ‘‘(II) shall gradually increase

6 over time; and

7 ‘‘(III) in the case of calendar

8 year 2010 and each calendar year

9 thereafter, shall be 1.0 percent.

10 ‘‘(2) OTHER ELEMENTS OF PROGRAM.—The

11 Administrator shall by regulation establish a pro12 gram to carry out paragraph (1) that, in order to

13 ensure the use of biodiesel fuel, has other elements

14 that are similar to the elements of the program for

15 gasoline under subsection (o), including—

16 ‘‘(A) a credit program similar to that de17 scribed in subsection (o)(1)(D); and

18 ‘‘(B) waiver authority similar to that pro19 vided by subsection (o)(2).’’.

20 (b) PENALTIES AND ENFORCEMENT.—Section

21 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is

22 amended—

23 (1) in paragraph (1)—
40

•S 2971 IS

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

2 (n)’’ each place it appears and inserting ‘‘(n),

3 (o), or (p)’’; and

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

5 (m)’’ and inserting ‘‘(m), (o), or (p)’’; and

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

7 striking ‘‘and (n)’’ each place it appears and insert8 ing ‘‘(n), (o), and (p)’’.

9 (c) PREVENTION OF EFFECTS ON HIGHWAY APPOR10 TIONMENTS.—

11 (1) SURFACE TRANSPORTATION PROGRAM.—

12 Section 104(b)(3) of title 23, United States Code, is

13 amended by adding at the end the following:

14 ‘‘(C) DETERMINATION OF ESTIMATED TAX

15 PAYMENTS.—For the purpose of determining

16 under subparagraph (A)(iii) the estimated tax

17 payments attributable to highway users in a

18 State paid into the Highway Trust Fund (other

19 than the Mass Transit Account) in a fiscal

20 year, the amount paid into the Highway Trust

21 Fund with respect to the sale of gasohol or

22 other fuels containing alcohol by reason of the

23 tax imposed by section 4041 (relating to special

24 fuels) or 4081 (relating to gasoline) of the In25 ternal Revenue Code of 1986 shall be treated as
41

•S 2971 IS

1 being equal to the amount that would have been

2 so imposed with respect to that sale without re3 gard to the reduction in revenues resulting from

4 the application of the regulations promulgated

5 under section 6(f) of the Toxic Substances Con6 trol Act (15 U.S.C. 2605(f)), subsections (o)

7 and (p) of section 211 of the Clean Air Act (42

8 U.S.C. 7545), and the following provisions of

9 the Internal Revenue Code of 1986:

10 ‘‘(i) Section 4041(b)(2) (relating to

11 exemption for qualified methanol and eth12 anol fuel).

13 ‘‘(ii) Section 4041(k) (relating to fuels

14 containing alcohol).

15 ‘‘(iii) Section 4041(m) (relating to

16 certain alcohol fuels).

17 ‘‘(iv) Section 4081(c) (relating to re18 duced rate on gasoline mixed with alco19 hol).’’.

20 (2) MINIMUM GUARANTEE.—Section 105(f)(1)

21 of title 23, United States Code, is amended—

22 (A) by striking ‘‘(1) IN GENERAL.—Be23 fore’’ and inserting the following: ‘‘(1) IN GEN24 ERAL.—

25 ‘‘(A) ADJUSTMENT.—Before’’; and
42

•S 2971 IS

1 (B) by adding at the end the following:

2 ‘‘(B) DETERMINATION OF ESTIMATED TAX

3 PAYMENTS.—For the purpose of determining

4 under this subsection the estimated tax pay5 ments attributable to highway users in a State

6 paid into the Highway Trust Fund (other than

7 the Mass Transit Account) in a fiscal year, the

8 amount paid into the Highway Trust Fund with

9 respect to the sale of gasohol or other fuels con10 taining alcohol by reason of the tax imposed by

11 section 4041 (relating to special fuels) or 4081

12 (relating to gasoline) of the Internal Revenue

13 Code of 1986 shall be treated as being equal to

14 the amount that would have been so imposed

15 with respect to that sale without regard to the

16 reduction in revenues resulting from the appli17 cation of the regulations promulgated under

18 section 6(f) of the Toxic Substances Control

19 Act (15 U.S.C. 2605(f)), subsections (o) and

20 (p) of section 211 of the Clean Air Act (42

21 U.S.C. 7545), and the following provisions of

22 the Internal Revenue Code of 1986:

23 ‘‘(i) Section 4041(b)(2) (relating to

24 exemption for qualified methanol and eth25 anol fuel).
43

•S 2971 IS

1 ‘‘(ii) Section 4041(k) (relating to fuels

2 containing alcohol).

3 ‘‘(iii) Section 4041(m) (relating to

4 certain alcohol fuels).

5 ‘‘(iv) Section 4081(c) (relating to re6 duced rate on gasoline mixed with alco7 hol).’’.

Æ