II

106TH CONGRESS

2D SESSION S. 2503

To amend the Clean Air Act to authorize States to regulate harmful fuel

additives and to require fuel to contain fuel made from renewable sources,

to amend the Solid Waste Disposal Act to require that at least 85

percent of funds appropriated to the Environmental Protection Agency

from the Leaking Underground Storage Tank Trust Fund be distributed

to States to carry out cooperative agreements for undertaking corrective

action and for enforcement of subtitle I of that Act, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

MAY 3, 2000

Mr. DASCHLE (for himself and Mr. LUGAR) 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 authorize States to regulate

harmful fuel additives and to require fuel to contain

fuel made from renewable sources, to amend the Solid

Waste Disposal Act to require that at least 85 percent

of funds appropriated to the Environmental Protection

Agency from the Leaking Underground Storage Tank

Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and

for enforcement of subtitle I of that Act, and for other

purposes.
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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 ‘‘Renewable Fuels Act

5 of 2000’’.

6 SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL

7 OR PROHIBIT USE OF MTBE.

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

9 7545(c)) is amended—

10 (1) in paragraph (1)(A), by striking ‘‘any emis11 sion product of such fuel or fuel additive causes, or

12 contributes, to air pollution which may reasonably be

13 anticipated to endanger the public health or wel14 fare,’’ and inserting ‘‘the fuel or fuel additive, or an

15 emission product of the fuel or fuel additive, causes

16 or contributes to air, water, or soil pollution that

17 may reasonably be anticipated to endanger the pub18 lic health or welfare or the environment,’’;

19 (2) in paragraph (2)(C), by inserting ‘‘or have

20 other environmental impacts’’ after ‘‘emissions’’;

21 (3) in paragraph (4)—

22 (A) in subparagraph (A), by redesignating

23 clauses (i) and (ii) as subclauses (I) and (II),

24 respectively, and indenting appropriately to re25 flect the amendments made by this paragraph;
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1 (B) by striking ‘‘(4)(A) Except as other2 wise provided in subparagraph (B) or (C),’’ and

3 inserting the following:

4 ‘‘(4) LIMITATION ON STATE AUTHORITY WITH

5 RESPECT TO FUELS AND FUEL ADDITIVES.—

6 ‘‘(A) IN GENERAL.—

7 ‘‘(i) FUELS AND FUEL ADDITIVES.—

8 Except as otherwise provided in subpara9 graph (B) or (C) or paragraph (5),’’;

10 (C) in subparagraph (A)—

11 (i) in clause (i) (as designated by sub12 paragraph (B)), by inserting ‘‘or water or

13 soil quality protection’’ after ‘‘emission

14 control’’; and

15 (ii) by adding at the end the fol16 lowing:

17 ‘‘(ii) MTBE.—Notwithstanding clause

18 (i), except as otherwise provided in sub19 paragraph (B) or (C) or paragraph (5), no

20 State (or political subdivision of a State)

21 may prescribe or attempt to enforce, for

22 the purpose of motor vehicle emission con23 trol or water or soil quality protection, any

24 control or prohibition on methyl tertiary
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1 butyl ether as a fuel additive in a motor

2 vehicle or motor vehicle engine.’’;

3 (D) in subparagraph (B), by inserting ‘‘or

4 water or soil quality protection’’ after ‘‘emission

5 control’’; and

6 (E) in subparagraph (C)—

7 (i) in the first sentence—

8 (I) by inserting ‘‘or water or soil

9 quality protection’’ after ‘‘emission

10 control’’; and

11 (II) by inserting before the pe12 riod at the end the following: ‘‘or, if

13 the Administrator grants a petition of

14 the State under paragraph (5)’’; and

15 (ii) in the second sentence, by striking

16 ‘‘only if he’’ and inserting ‘‘if the Adminis17 trator’’; and

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

19 ‘‘(5) STATE PETITIONS FOR AUTHORITY TO

20 CONTROL OR PROHIBIT USE OF FUELS OR FUEL AD21 DITIVES FOR NON-AIR QUALITY PURPOSES.—

22 ‘‘(A) IN GENERAL.—A State seeking to

23 prescribe and enforce a control or prohibition

24 on a fuel or fuel additive for the purpose of

25 water or soil quality protection under paragraph
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1 (4)(C) shall submit a petition to the Adminis2 trator for authority to take such action.

3 ‘‘(B) REQUIRED ELEMENTS OF PETI4 TION.—A petition submitted under subpara5 graph (A) shall—

6 ‘‘(i) include information on—

7 ‘‘(I) the likely effects of the con8 trol or prohibition on fuel availability

9 and price in the affected supply area

10 or region; and

11 ‘‘(II) the improvements in envi12 ronmental quality or public health or

13 welfare expected to result from the

14 control or prohibition; and

15 ‘‘(ii) demonstrate that the authority is

16 necessary to protect the environment or

17 public health or welfare.

18 ‘‘(C) ACTION BY THE ADMINISTRATOR.—

19 Not later than 180 days after the date of re20 ceipt of a petition submitted under subpara21 graph (A), the Administrator shall grant or

22 deny the petition.

23 ‘‘(D) CRITERIA FOR GRANTING OF PETI24 TIONS.—The Administrator shall grant a peti-
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1 tion submitted by a State under subparagraph

2 (A) unless the Administrator finds that—

3 ‘‘(i) the petition fails to reasonably

4 demonstrate that the authority is nec5 essary to protect the environment or public

6 health or welfare;

7 ‘‘(ii) the control or prohibition is likely

8 to have a substantial and significant ad9 verse effect on fuel availability or price (in10 cluding a State or regional effect) that

11 clearly outweighs any benefits associated

12 with the control or prohibition; or

13 ‘‘(iii) in the case of a petition sub14 mitted by a State seeking the authority

15 primarily to protect water resources, the

16 State has failed to take other appropriate

17 and reasonable actions to prevent contami18 nation of water resources by fuels or fuel

19 additives, such as—

20 ‘‘(I) adoption of a prohibition on

21 the delivery of gasoline to noncompli22 ant facilities with underground stor23 age tanks; or
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1 ‘‘(II) operation of a statewide

2 monitoring and compliance assurance

3 system.

4 ‘‘(E) EFFECT OF FAILURE OF ADMINIS5 TRATOR TO ACT.—If, by the date that is 180

6 days after the date of receipt of a petition sub7 mitted under subparagraph (A), the Adminis8 trator has not proposed to grant or deny the

9 petition under subparagraph (C), the petition

10 shall be deemed to be granted.

11 ‘‘(F) PROCEDURAL REQUIREMENTS.—

12 ‘‘(i) INAPPLICABILITY OF CERTAIN

13 REQUIREMENTS.—Section 307(d) of this

14 Act and sections 553 through 557 of title

15 5, United States Code, shall not apply to

16 actions on a petition submitted under sub17 paragraph (A).

18 ‘‘(ii) PUBLIC NOTICE AND OPPOR19 TUNITY FOR COMMENT.—The Adminis20 trator shall provide public notice and op21 portunity for comment with respect to a

22 petition submitted under subparagraph

23 (A).

24 ‘‘(6) LIMITATION ON MTBE CONTENT.—The

25 Administrator shall promulgate regulations applica-
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1 ble to each refiner, blender, or importer of gasoline

2 to ensure that gasoline sold or introduced into com3 merce by the refiner, blender, or importer on or

4 after January 1, 2004, in an area has a content of

5 methyl tertiary butyl ether that is at a level that—

6 ‘‘(A) the Administrator determines may

7 not reasonably be anticipated to endanger nat8 ural resources and the public health; and

9 ‘‘(B) does not exceed the annual average

10 volume of methyl tertiary butyl ether per gallon

11 of gasoline used in the area before 1995.’’.

12 SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT.

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

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

15 (1) in paragraph (1)—

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

17 enactment of the Clean Air Act Amendments of

18 1990,’’ and inserting the following:

19 ‘‘(A) IN GENERAL.—Not later than No20 vember 15, 1991,’’;

21 (B) in the first sentence, by inserting be22 fore the period at the end the following: ‘‘and

23 opt-in areas under paragraph (6)’’; and

24 (C) by adding at the end the following:
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1 ‘‘(B) ADJUSTMENT OF VOC PERFORMANCE

2 STANDARD.—

3 ‘‘(i) IN GENERAL.—The Administrator

4 may adjust the volatile organic compounds

5 performance standard promulgated under

6 subparagraph (A) in the case of a fuel for7 mulation that achieves reductions in the

8 quantity of mass emissions of carbon mon9 oxide that are greater than or less than the

10 reductions associated with a reformulated

11 gasoline that contains 2.0 percent oxygen

12 by weight and otherwise meets the require13 ments of this subsection.

14 ‘‘(ii) AMOUNT OF ADJUSTMENT.—The

15 amount of an adjustment under clause (i)

16 shall be based on the effect on ozone con17 centrations of the combined reductions in

18 emissions of volatile organic compounds

19 and reductions in emissions of carbon mon20 oxide.’’;

21 (2) in paragraph (2)—

22 (A) in subparagraph (B)—

23 (i) by striking ‘‘The oxygen’’ and in24 serting the following:

25 ‘‘(i) IN GENERAL.—The oxygen’’; and
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1 (ii) by adding at the end the fol2 lowing:

3 ‘‘(ii) WAIVER FOR CERTAIN STATES.—

4 The Administrator shall waive the applica5 tion of clause (i) for any ozone nonattain6 ment area in a State if the Governor of the

7 State submits for such a waiver an applica8 tion that—

9 ‘‘(I) demonstrates that the State

10 is in full compliance with Federal reg11 ulations concerning the control and

12 prevention of leaking underground

13 storage tanks; or

14 ‘‘(II) provides a plan that out15 lines the measures the State will take

16 to fully comply with the underground

17 storage tank regulations by a date not

18 later than 2 years after the receipt of

19 the application of the Governor.

20 ‘‘(iii) EFFECTIVE DATE.—A waiver

21 under clause (ii) shall become effective on

22 the later of—

23 ‘‘(I) January 1 of the calendar

24 year immediately following the cal-
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1 endar year during which the applica2 tion for the waiver is received; or

3 ‘‘(II) the date that is 180 days

4 after the date on which the applica5 tion for the waiver is received.’’; and

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

7 ‘‘(E) AROMATICS.—The aromatic hydro8 carbon content of the gasoline shall not exceed

9 22 percent by volume.’’;

10 (3) in paragraph (3)—

11 (A) in subparagraph (A)(ii), by striking

12 ‘‘25 percent’’ and inserting ‘‘22 percent’’; and

13 (B) in subparagraph (B)—

14 (i) by striking ‘‘Any reduction’’ and

15 inserting the following:

16 ‘‘(iii) TREATMENT OF GREATER RE17 DUCTIONS.—Any reduction’’; and

18 (ii) by adding at the end the fol19 lowing:

20 ‘‘(iv) ANTI-BACKSLIDING PROVI21 SION.—

22 ‘‘(I) IN GENERAL.—Not later

23 than June 1, 2000, the Administrator

24 shall revise performance standards
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1 under this subparagraph as necessary

2 to ensure that—

3 ‘‘(aa) the ozone-forming po4 tential, taking into account all

5 ozone precursors (including vola6 tile organic compounds, oxides of

7 nitrogen, and carbon monoxide),

8 of the aggregate emissions during

9 the high ozone season (as deter10 mined by the Administrator)

11 from baseline vehicles when using

12 reformulated gasoline does not

13 exceed the ozone-forming poten14 tial of the aggregate emissions

15 during the high ozone season

16 from baseline vehicles when using

17 reformulated gasoline that com18 plies with the regulations that

19 were in effect on January 1,

20 2000, and were applicable to re21 formulated gasoline sold in cal22 endar year 2000 and subsequent

23 calendar years; and

24 ‘‘(bb) the aggregate emis25 sions of the pollutants specified
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1 in subclause (II) from baseline

2 vehicles when using reformulated

3 gasoline do not exceed the aggre4 gate emissions of those pollutants

5 from baseline vehicles when using

6 reformulated gasoline that com7 plies with the regulations that

8 were in effect on January 1,

9 2000, and were applicable to re10 formulated gasolines sold in cal11 endar year 2000 and subsequent

12 calendar years.

13 ‘‘(II) SPECIFIED POLLUTANTS.—

14 The pollutants specified in this sub15 clause are—

16 ‘‘(aa) toxics, categorized by

17 degrees of toxicity; and

18 ‘‘(bb) such other pollutants,

19 including pollutants regulated

20 under section 108, and such pre21 cursors to those pollutants, as

22 the Administrator determines by

23 regulation should be controlled to

24 prevent the deterioration of air

25 quality and to achieve attainment
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1 of a national ambient air quality

2 standard in 1 or more areas.’’;

3 and

4 (4) in paragraph (4)(B)—

5 (A) by redesignating clauses (i) and (ii) as

6 subclauses (I) and (II), respectively, and in7 denting appropriately to reflect the amendments

8 made by this paragraph;

9 (B) by striking ‘‘The Administrator’’ and

10 inserting the following:

11 ‘‘(i) IN GENERAL.—The Adminis12 trator’’;

13 (C) in clause (i) (as designated by sub14 paragraph (B))—

15 (i) in subclause (I) (as redesignated

16 by subparagraph (A)), by striking ‘‘, and’’

17 and inserting a semicolon;

18 (ii) in subclause (II) (as redesignated

19 by subparagraph (A))—

20 (I) by striking ‘‘achieve equiva21 lent’’ and inserting the following:

22 ‘‘achieve—

23 ‘‘(aa) equivalent’’;

24 (II) by striking the period at the

25 end and inserting ‘‘; or’’; and
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1 (III) by adding at the end the

2 following:

3 ‘‘(bb) combined reductions

4 in emissions of ozone forming

5 volatile organic compounds and

6 carbon monoxide that result in a

7 reduction in ozone concentration,

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

9 is equivalent to or greater than

10 the reduction in ozone concentra11 tion achieved by a reformulated

12 gasoline meeting the applicable

13 requirements of paragraph (3);

14 and’’; and

15 (iii) by adding at the end the fol16 lowing:

17 ‘‘(III) achieve equivalent or

18 greater reductions in emissions of

19 toxic air pollutants than are achieved

20 by a reformulated gasoline meeting

21 the applicable requirements of para22 graph (3).’’; and

23 (D) by adding at the end the following:

24 ‘‘(ii) CARBON MONOXIDE CREDIT.—
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1 ‘‘(I) IN GENERAL.—In deter2 mining whether a fuel formulation or

3 slate of fuel formulations achieves

4 combined reductions in emissions of

5 ozone forming volatile organic com6 pounds and carbon monoxide that re7 sult in a reduction in ozone concentra8 tion that is equivalent to or greater

9 than the reduction in ozone concentra10 tion achieved by a reformulated gaso11 line meeting the applicable require12 ments of paragraph (3), the

13 Administrator—

14 ‘‘(aa) shall consider, to the

15 extent appropriate, the change in

16 carbon monoxide emissions from

17 baseline vehicles attributable to

18 an oxygen content in the fuel for19 mulation or slate of fuel formula20 tions that exceeds 2.0 percent by

21 weight; and

22 ‘‘(bb) may consider, to the

23 extent appropriate, the change in

24 carbon monoxide emissions de-
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1 scribed in item (aa) from vehicles

2 other than baseline vehicles.

3 ‘‘(II) OXYGEN CREDITS.—Any

4 excess oxygen content that is taken

5 into consideration in making a deter6 mination under subclause (I) may not

7 be used to generate credits under

8 paragraph (7)(A).

9 ‘‘(III) RELATION TO TITLE I.—

10 Any fuel formulation or slate of fuel

11 formulations that is certified as equiv12 alent or greater under this subpara13 graph, taking into consideration the

14 combined reductions in emissions of

15 volatile organic compounds and car16 bon monoxide, shall receive the same

17 volatile organic compounds reduction

18 credit for the purposes of subsections

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

20 a fuel meeting the applicable require21 ments of paragraph (3).’’.

22 (b) REFORMULATED GASOLINE CARBON MONOXIDE

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

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

25 at the end the following: ‘‘An adjustment to the volatile
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1 organic compound emission reduction requirements under

2 section 211(k)(3)(B)(iv) shall be credited toward the re3 quirement for VOC emissions reductions under this sub4 paragraph.’’.

5 SEC. 4. ADDITIONAL OPT-IN AREAS UNDER REFORMU6 LATED GASOLINE PROGRAM.

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

8 7545(k)(6)) is amended—

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

10 Upon’’ and inserting the following:

11 ‘‘(6) OPT-IN AREAS.—

12 ‘‘(A) CLASSIFIED AREAS.—

13 ‘‘(i) IN GENERAL.—Upon’’;

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

15 and inserting the following:

16 ‘‘(ii) EFFECT OF INSUFFICIENT DO17 MESTIC CAPACITY TO PRODUCE REFORMU18 LATED GASOLINE.—If’’;

19 (3) in subparagraph (A)(ii) (as so redesig20 nated)—

21 (A) in the first sentence, by striking ‘‘sub22 paragraph (A)’’ and inserting ‘‘clause (i)’’; and

23 (B) in the second sentence, by striking

24 ‘‘this paragraph’’ and inserting ‘‘this subpara25 graph’’; and
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1 (4) by adding at the end the following:

2 ‘‘(B) NONCLASSIFIED AREAS.—

3 ‘‘(i) IN GENERAL.—Upon the applica4 tion of the Governor of a State, the Ad5 ministrator shall apply the prohibition

6 specified in paragraph (5) in any area in

7 the State that is not a covered area or an

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

9 ‘‘(ii) PUBLICATION OF APPLICA10 TION.—As soon as practicable after receipt

11 of an application under clause (i), the Ad12 ministrator shall publish the application in

13 the Federal Register.’’.

14 SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER

15 MOTOR FUELS.

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

17 (42 U.S.C. 7545) is amended—

18 (1) by redesignating subsection (o) as sub19 section (q); and

20 (2) by inserting after subsection (n) the fol21 lowing:

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

23 ‘‘(1) IN GENERAL.—

24 ‘‘(A) REGULATIONS.—Not later than Sep25 tember 1, 2000, the Administrator shall pro-
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1 mulgate regulations applicable to each refiner,

2 blender, or importer of gasoline to ensure that

3 gasoline sold or introduced into commerce in

4 the United States by the refiner, blender, or im5 porter complies with the renewable content re6 quirements of this subsection.

7 ‘‘(B) RENEWABLE CONTENT REQUIRE8 MENTS.—

9 ‘‘(i) IN GENERAL.—All gasoline sold

10 or introduced into commerce in the United

11 States by a refiner, blender, or importer

12 shall contain, on a quarterly average basis,

13 a quantity of fuel derived from a renewable

14 source (including biomass ethanol) that is

15 not less than the applicable percentage by

16 volume for the quarter.

17 ‘‘(ii) BIOMASS ETHANOL.—For the

18 purposes of clause (i), 1 gallon of biomass

19 ethanol shall be considered to be the equiv20 alent of 1.5 gallons of fuel derived from a

21 renewable source.

22 ‘‘(iii) APPLICABLE PERCENTAGE.—

23 For the purposes of clause (i), the applica24 ble percentage for a quarter of a calendar
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1 year shall be determined in accordance

2 with the following table:

Applicable Percentage

of Fuel Derived From a

‘‘Calendar year: Renewable Source:

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

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

2002 ......................................................................................... 1.7

2003 ......................................................................................... 1.9

2004 ......................................................................................... 2.1

2005 ......................................................................................... 2.3

2006 ......................................................................................... 2.5

2007 ......................................................................................... 2.7

2008 ......................................................................................... 2.9

2009 ......................................................................................... 3.1

2010 and thereafter ................................................................. 3.3.

3 ‘‘(C) FUEL DERIVED FROM A RENEWABLE

4 SOURCE.—For the purposes of this subsection,

5 a fuel shall be considered to be derived from a

6 renewable source if the fuel—

7 ‘‘(i) is produced from grain, starch,

8 oilseeds, or other biomass; and

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

10 quantity of fossil fuel present in a fuel

11 mixture used to operate a motor vehicle.

12 ‘‘(D) BIOMASS ETHANOL.—For the pur13 poses of this subsection, a fuel shall be consid14 ered to be biomass ethanol if the fuel is ethanol

15 derived from any lignocellulosic or

16 hemicellulosic matter that is available on a re17 newable or recurring basis, including—

18 ‘‘(i) dedicated energy crops and trees;

19 ‘‘(ii) wood and wood residues;
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1 ‘‘(iii) plants;

2 ‘‘(iv) grasses;

3 ‘‘(v) agricultural commodities and res4 idues;

5 ‘‘(vi) fibers;

6 ‘‘(vii) animal wastes and other waste

7 materials; and

8 ‘‘(viii) municipal solid waste.

9 ‘‘(E) CREDIT PROGRAM.—

10 ‘‘(i) IN GENERAL.—The regulations

11 promulgated under this subsection shall

12 provide for the generation of an appro13 priate amount of credits by a person that

14 refines, blends, or imports gasoline that

15 contains, on a quarterly average basis, a

16 quantity of fuel derived from a renewable

17 source or a quantity of biomass ethanol

18 that is greater than the quantity required

19 under subparagraph (B).

20 ‘‘(ii) USE OF CREDITS.—The regula21 tions shall provide that a person that gen22 erates the credits may use the credits, or

23 transfer all or a portion of the credits to

24 another person, for the purpose of com25 plying with subparagraph (B).
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1 ‘‘(2) WAIVERS.—

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

3 consultation with the Secretary of Agriculture,

4 may waive the requirements of paragraph

5 (1)(B) in whole or in part on petition by a

6 State—

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

8 Administrator, after public notice and op9 portunity for comment, that implementa10 tion of the requirements would severely

11 harm the economy or environment of a

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

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

14 Administrator, after public notice and op15 portunity for comment, that there is an in16 adequate domestic supply or distribution

17 capacity to meet the requirements of para18 graph (1)(B).

19 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad20 ministrator, in consultation with the Secretary

21 of Agriculture—

22 ‘‘(i) shall approve or deny a State pe23 tition for a waiver of the requirements of

24 paragraph (1)(B) within 180 days after
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1 the date on which the petition is received;

2 but

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

4 60 additional days to provide for public no5 tice and opportunity for comment and for

6 consideration of the comments submitted.

7 ‘‘(C) TERMINATION OF WAIVERS.—A waiv8 er granted under subparagraph (A) shall termi9 nate after 1 year, but may be renewed by the

10 Administrator after consultation with the Sec11 retary of Agriculture.

12 ‘‘(D) OXYGEN CONTENT WAIVERS.—The

13 grant or denial of a waiver under subsection

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

15 this subsection.

16 ‘‘(3) SMALL REFINERS.—The regulations pro17 mulgated by the Administrator under paragraph (1)

18 may provide an exemption, in whole or in part, for

19 small refiners (as defined by the Administrator).

20 ‘‘(4) GUIDANCE FOR LABELING.—After con21 sultation with the Secretary of Agriculture, the Ad22 ministrator shall issue guidance to the States for la23 beling, at the point of retail sale—

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

25 source that is contained in the fuel sold; and
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1 ‘‘(B) the major fuel additive components of

2 the fuel sold.

3 ‘‘(5) REPORTS TO CONGRESS.—Not less often

4 than every 3 years, the Administrator shall submit

5 to Congress a report on—

6 ‘‘(A) reductions in emissions of criteria air

7 pollutants listed under section 108 that result

8 from implementation of this subsection; and

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

10 Energy, greenhouse gas emission reductions

11 that result from implementation of this sub12 section.

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

14 ‘‘(1) IN GENERAL.—Not later than September

15 1, 2000, the Administrator, after consideration of

16 applicable economic and environmental factors, shall

17 promulgate regulations applicable to each refiner,

18 blender, or importer of diesel fuel to ensure that the

19 diesel fuel sold or introduced into commerce in the

20 United States by the refiner, blender, or importer

21 complies with the renewable content requirements

22 established by the Administrator under this sub23 section.

24 ‘‘(2) ELEMENTS OF PROGRAM.—To the extent

25 that the Administrator determines it to be appro-
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1 priate, the Administrator shall by regulation estab2 lish a program for diesel fuel that has renewable

3 content requirements similar to the requirements of

4 the program for gasoline under subsection (o) in

5 order to ensure the use of biodiesel fuel.’’.

6 (b) PENALTIES AND ENFORCEMENT.—Section

7 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is

8 amended—

9 (1) in paragraph (1)—

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

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

12 or (o)’’; and

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

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

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

16 striking ‘‘and (n)’’ each place it appears and insert17 ing ‘‘(n), and (o)’’.

18 (c) PREVENTION OF EFFECTS ON HIGHWAY APPOR19 TIONMENTS.—

20 (1) SURFACE TRANSPORTATION PROGRAM.—

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

22 amended by adding at the end the following:

23 ‘‘(C) DETERMINATION OF ESTIMATED TAX

24 PAYMENTS.—For the purpose of determining

25 under subparagraph (A)(iii) the estimated tax
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1 payments attributable to highway users in a

2 State paid into the Highway Trust Fund (other

3 than the Mass Transit Account) in a fiscal

4 year, the amount paid into the Highway Trust

5 Fund with respect to the sale of gasohol or

6 other fuels containing alcohol by reason of the

7 tax imposed by section 4041 (relating to special

8 fuels) or 4081 (relating to gasoline) of the In9 ternal Revenue Code of 1986 shall be treated as

10 being equal to the amount that would have been

11 so imposed with respect to that sale without re12 gard to the reduction in revenues resulting from

13 the application of the regulations promulgated

14 under section 211(o) of the Clean Air Act (42

15 U.S.C. 7545(o)) and the following provisions of

16 the Internal Revenue Code of 1986:

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

18 exemption for qualified methanol and eth19 anol fuel).

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

21 containing alcohol).

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

23 certain alcohol fuels).
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1 ‘‘(iv) Section 4081(c) (relating to re2 duced rate on gasoline mixed with alco3 hol).’’.

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

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

6 (A) by striking ‘‘(1) IN GENERAL.—Be7 fore’’ and inserting the following: ‘‘(1) IN GEN8 ERAL.—

9 ‘‘(A) ADJUSTMENT.—Before’’; and

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

11 ‘‘(B) DETERMINATION OF ESTIMATED TAX

12 PAYMENTS.—For the purpose of determining

13 under this subsection the estimated tax pay14 ments attributable to highway users in a State

15 paid into the Highway Trust Fund (other than

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

17 amount paid into the Highway Trust Fund with

18 respect to the sale of gasohol or other fuels con19 taining alcohol by reason of the tax imposed by

20 section 4041 (relating to special fuels) or 4081

21 (relating to gasoline) of the Internal Revenue

22 Code of 1986 shall be treated as being equal to

23 the amount that would have been so imposed

24 with respect to that sale without regard to the

25 reduction in revenues resulting from the appli-
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1 cation of the regulations promulgated under

2 section 211(o) of the Clean Air Act (42 U.S.C.

3 7545(o)) and the following provisions of the In4 ternal Revenue Code of 1986:

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

6 exemption for qualified methanol and eth7 anol fuel).

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

9 containing alcohol).

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

11 certain alcohol fuels).

12 ‘‘(iv) Section 4081(c) (relating to re13 duced rate on gasoline mixed with alco14 hol).’’.

15 SEC. 6. UPDATING OF BASELINE YEAR.

16 (a) IN GENERAL.—Section 211(k) of the Clean Air

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

18 (1) in paragraph (8)—

19 (A) in subparagraph (A)—

20 (i) in the first sentence, by striking

21 ‘‘Within 1 year after the enactment of the

22 Clean Air Act Amendments of 1990, the’’

23 and inserting ‘‘The’’; and

24 (ii) by striking the second sentence;
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1 (B) by striking ‘‘calendar year 1990’’ each

2 place it appears and inserting ‘‘calendar year

3 1999’’; and

4 (C) in subparagraph (E), by striking ‘‘such

5 1990 gasoline’’ and inserting ‘‘such 1999 gaso6 line’’; and

7 (2) in subparagraphs (A) and (B)(ii) of para8 graph (10), by striking ‘‘1990’’ each place it appears

9 and inserting ‘‘1999’’.

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

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

12 Environmental Protection Agency shall revise the regula13 tions promulgated under section 211(k) of the Clean Air

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

15 by subsection (a).

16 SEC. 7. LEAKING UNDERGROUND STORAGE TANKS.

17 (a) TRUST FUND DISTRIBUTION.—Section 9004 of

18 the Solid Waste Disposal Act (42 U.S.C. 6991c) is amend19 ed by adding at the end the following:

20 ‘‘(f) TRUST FUND DISTRIBUTION.—

21 ‘‘(1) IN GENERAL.—

22 ‘‘(A) AMOUNT AND PERMITTED USE OF

23 DISTRIBUTION.—The Administrator shall dis24 tribute to States at least 85 percent of the

25 funds appropriated to the Environmental Pro-
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1 tection Agency from the Leaking Underground

2 Storage Tank Trust Fund established by sec3 tion 9508 of the Internal Revenue Code of 1986

4 (referred to in this subsection as the ‘Trust

5 Fund’) for each fiscal year for use in paying the

6 reasonable costs, incurred under cooperative

7 agreements with States, of—

8 ‘‘(i) actions taken by a State under

9 section 9003(h)(7)(A);

10 ‘‘(ii) necessary administrative ex11 penses directly related to corrective action

12 and compensation programs under sub13 section (c)(1);

14 ‘‘(iii) enforcement by a State or local

15 government of a State program approved

16 under this section or of State or local re17 quirements regulating underground storage

18 tanks that are similar or identical to this

19 subtitle;

20 ‘‘(iv) State or local corrective actions

21 pursuant to regulations promulgated under

22 section 9003(c)(4); or

23 ‘‘(v) corrective action and compensa24 tion programs under subsection (c)(1) for

25 releases from underground storage tanks
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1 regulated under this subtitle if, as deter2 mined by the State in accordance with

3 guidelines developed between the Environ4 mental Protection Agency and the States,

5 the financial resources of an owner or op6 erator (including resources provided by

7 programs under subsection (c)(1)) are not

8 adequate to pay for the cost of a corrective

9 action without significantly impairing the

10 ability of the owner or operator to continue

11 in business.

12 ‘‘(B) NONPERMITTED USES.—Funds pro13 vided by the Administrator under subparagraph

14 (A) shall not be used by a State to provide fi15 nancial assistance to an owner or operator to

16 meet the requirements concerning underground

17 storage tanks contained in part 280 of title 40,

18 Code of Federal Regulations (as in effect on the

19 date of enactment of this subsection), except as

20 provided in subparagraph (A)(v), or similar re21 quirements in State programs approved under

22 this section or similar State or local provisions.

23 ‘‘(C) TANKS WITHIN TRIBAL JURISDIC24 TION.—The Administrator, in coordination with

25 Indian tribes, shall—
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1 ‘‘(i) expeditiously develop and imple2 ment a strategy to—

3 ‘‘(I) take necessary corrective ac4 tion in response to releases from leak5 ing underground storage tanks located

6 wholly within the exterior boundaries

7 of an Indian reservation or other area

8 within the jurisdiction of an Indian

9 tribe, giving priority to releases that

10 present the greatest threat to human

11 health or the environment; and

12 ‘‘(II) implement and enforce re13 quirements regulating underground

14 storage tanks located wholly within

15 the exterior boundaries of an Indian

16 reservation or other area within the

17 jurisdiction of an Indian tribe; and

18 ‘‘(ii) not later than 2 years after the

19 date of enactment of this subsection, and

20 every 2 years thereafter, submit to Con21 gress a report summarizing the status of

22 implementation of the leaking underground

23 storage tank program located wholly within

24 the exterior boundaries of an Indian res-
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1 ervation or other area within the jurisdic2 tion of an Indian tribe.

3 ‘‘(2) ALLOCATION.—

4 ‘‘(A) PROCESS.—Subject to subparagraph

5 (B), in the case of a State with which the Ad6 ministrator has entered into a cooperative

7 agreement under section 9003(h)(7)(A), the

8 Administrator shall distribute funds from the

9 Trust Fund to the State using the allocation

10 process developed by the Administrator for such

11 cooperative agreements.

12 ‘‘(B) REVISIONS TO PROCESS.—The Ad13 ministrator may revise the allocation process

14 only after—

15 ‘‘(i) consulting with State agencies re16 sponsible for overseeing corrective action

17 for releases from underground storage

18 tanks and with representatives of owners

19 and operators; and

20 ‘‘(ii) taking into consideration, at a

21 minimum—

22 ‘‘(I) the total revenue received

23 from each State into the Trust Fund;
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1 ‘‘(II) the number of confirmed

2 releases from leaking underground

3 storage tanks in each State;

4 ‘‘(III) the number of notified pe5 troleum storage tanks in each State;

6 ‘‘(IV) the percentage of the popu7 lation of each State using ground

8 water for any beneficial purpose;

9 ‘‘(V) the evaluation of the pro10 gram performance of each State;

11 ‘‘(VI) the evaluation of the finan12 cial needs of each State; and

13 ‘‘(VII) the evaluation of the abil14 ity of each State to use the funds in

15 any year.

16 ‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.—

17 ‘‘(A) IN GENERAL.—Distributions from the

18 Trust Fund under this subsection shall be made

19 directly to the State agency entering into a co20 operative agreement or enforcing the State pro21 gram.

22 ‘‘(B) ADMINISTRATIVE EXPENSES.—A

23 State agency that receives funds under this sub24 section shall limit the proportion of those funds

25 that are used to pay administrative expenses to
36

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1 a percentage that the State may establish by

2 law.

3 ‘‘(4) COST RECOVERY PROHIBITION.—Funds

4 provided to States from the Trust Fund to owners

5 or operators for programs under section 9004(c)(1)

6 for releases from underground storage tanks are not

7 subject to cost recovery by the Administrator under

8 section 9003(h)(6).

9 ‘‘(5) PERMITTED USES.—In addition to uses

10 authorized by other provisions of this subtitle, the

11 Administrator may use funds appropriated to the

12 Environmental Protection Agency from the Trust

13 Fund for enforcement of any regulation promulgated

14 by the Administrator under this subtitle.’’.

15 (b) ADDITION TO TRUST FUND PURPOSES.—Section

16 9508(c)(1) of the Internal Revenue Code of 1986 (relating

17 to expenditures) is amended by striking ‘‘to carry out sec18 tion 9003(h)’’ and all that follows and inserting ‘‘to carry

19 out—

20 ‘‘(A) section 9003(h) of the Solid Waste

21 Disposal Act (as in effect on the date of enact22 ment of the Superfund Amendments and Reau23 thorization Act of 1986); and
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1 ‘‘(B) section 9004(f) of the Solid Waste

2 Disposal Act (as in effect on the date of enact3 ment of the Renewable Fuels Act of 2000).’’.

4 (c) STUDIES.—Not later than 18 months after the

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

6 Environmental Protection Agency shall conduct—

7 (1) a study to determine the corrosive effects of

8 methyl tertiary butyl ether and other widely used

9 fuels and fuel additives on underground storage

10 tanks; and

11 (2) a study to assess the potential public health

12 and environmental risks associated with the use of

13 aboveground storage tanks and the effectiveness of

14 State and Federal regulations or voluntary stand15 ards, in existence as of the time of the study, to pro16 vide adequate protection of public health and the en17 vironment.

18 (d) TECHNICAL AMENDMENTS.—

19 (1) Section 9001(3)(A) of the Solid Waste Dis20 posal Act (42 U.S.C. 6991(3)(A)) is amended by

21 striking ‘‘sustances’’ and inserting ‘‘substances’’.

22 (2) Section 9003(f)(1) of the Solid Waste Dis23 posal Act (42 U.S.C. 6991b(f)(1)) is amended by

24 striking ‘‘subsection (c) and (d) of this section’’ and

25 inserting ‘‘subsections (c) and (d)’’.
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1 (3) Section 9004(a) of the Solid Waste Disposal

2 Act (42 U.S.C. 6991c(a)) is amended in the first

3 sentence by striking ‘‘referred to’’ and all that fol4 lows and inserting ‘‘referred to in subparagraph (A)

5 or (B), or both, of section 9001(2).’’.

6 (4) Section 9005 of the Solid Waste Disposal

7 Act (42 U.S.C. 6991d) is amended—

8 (A) in subsection (a), by striking ‘‘study

9 taking’’ and inserting ‘‘study, taking’’;

10 (B) in subsection (b)(1), by striking

11 ‘‘relevent’’ and inserting ‘‘relevant’’; and

12 (C) in subsection (b)(4), by striking

13 ‘‘Evironmental’’ and inserting ‘‘Environ14 mental’’.

15 SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM.

16 (a) IN GENERAL.—The Administrator of the Envi17 ronmental Protection Agency may enter into cooperative

18 agreements with the United States Geological Survey, the

19 Department of Agriculture, States, local governments, pri20 vate landowners, and other interested parties to establish

21 voluntary pilot projects to protect the water quality of pri22 vate wells and to provide technical assistance to users of

23 water from private wells.
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1 (b) LIMITATION.—This section does not authorize the

2 issuance of guidance or regulations regarding the use or

3 protection of private wells.

Æ