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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2503 Introduced in Senate (IS)]

  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.

    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 ``Renewable Fuels Act of 2000''.

SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF 
              MTBE.

    Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is 
amended--
            (1) in paragraph (1)(A), by striking ``any emission product 
        of such fuel or fuel additive causes, or contributes, to air 
        pollution which may reasonably be anticipated to endanger the 
        public health or welfare,'' and inserting ``the fuel or fuel 
        additive, or an emission product of the fuel or fuel additive, 
        causes or contributes to air, water, or soil pollution that may 
        reasonably be anticipated to endanger the public health or 
        welfare or the environment,'';
            (2) in paragraph (2)(C), by inserting ``or have other 
        environmental impacts'' after ``emissions'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A), by redesignating clauses 
                (i) and (ii) as subclauses (I) and (II), respectively, 
                and indenting appropriately to reflect the amendments 
                made by this paragraph;
                    (B) by striking ``(4)(A) Except as otherwise 
                provided in subparagraph (B) or (C),'' and inserting 
                the following:
            ``(4) Limitation on state authority with respect to fuels 
        and fuel additives.--
                    ``(A) In general.--
                            ``(i) Fuels and fuel additives.--Except as 
                        otherwise provided in subparagraph (B) or (C) 
                        or paragraph (5),'';
                    (C) in subparagraph (A)--
                            (i) in clause (i) (as designated by 
                        subparagraph (B)), by inserting ``or water or 
                        soil quality protection'' after ``emission 
                        control''; and
                            (ii) by adding at the end the following:
                            ``(ii) MTBE.--Notwithstanding clause (i), 
                        except as otherwise provided in subparagraph 
                        (B) or (C) or paragraph (5), no State (or 
                        political subdivision of a State) may prescribe 
                        or attempt to enforce, for the purpose of motor 
                        vehicle emission control or water or soil 
                        quality protection, any control or prohibition 
                        on methyl tertiary butyl ether as a fuel 
                        additive in a motor vehicle or motor vehicle 
                        engine.'';
                    (D) in subparagraph (B), by inserting ``or water or 
                soil quality protection'' after ``emission control''; 
                and
                    (E) in subparagraph (C)--
                            (i) in the first sentence--
                                    (I) by inserting ``or water or soil 
                                quality protection'' after ``emission 
                                control''; and
                                    (II) by inserting before the period 
                                at the end the following: ``or, if the 
                                Administrator grants a petition of the 
                                State under paragraph (5)''; and
                            (ii) in the second sentence, by striking 
                        ``only if he'' and inserting ``if the 
                        Administrator''; and
            (4) by adding at the end the following:
            ``(5) State petitions for authority to control or prohibit 
        use of fuels or fuel additives for non-air quality purposes.--
                    ``(A) In general.--A State seeking to prescribe and 
                enforce a control or prohibition on a fuel or fuel 
                additive for the purpose of water or soil quality 
                protection under paragraph (4)(C) shall submit a 
                petition to the Administrator for authority to take 
                such action.
                    ``(B) Required elements of petition.--A petition 
                submitted under subparagraph (A) shall--
                            ``(i) include information on--
                                    ``(I) the likely effects of the 
                                control or prohibition on fuel 
                                availability and price in the affected 
                                supply area or region; and
                                    ``(II) the improvements in 
                                environmental quality or public health 
                                or welfare expected to result from the 
                                control or prohibition; and
                            ``(ii) demonstrate that the authority is 
                        necessary to protect the environment or public 
                        health or welfare.
                    ``(C) Action by the administrator.--Not later than 
                180 days after the date of receipt of a petition 
                submitted under subparagraph (A), the Administrator 
                shall grant or deny the petition.
                    ``(D) Criteria for granting of petitions.--The 
                Administrator shall grant a petition submitted by a 
                State under subparagraph (A) unless the Administrator 
                finds that--
                            ``(i) the petition fails to reasonably 
                        demonstrate that the authority is necessary to 
                        protect the environment or public health or 
                        welfare;
                            ``(ii) the control or prohibition is likely 
                        to have a substantial and significant adverse 
                        effect on fuel availability or price (including 
                        a State or regional effect) that clearly 
                        outweighs any benefits associated with the 
                        control or prohibition; or
                            ``(iii) in the case of a petition submitted 
                        by a State seeking the authority primarily to 
                        protect water resources, the State has failed 
                        to take other appropriate and reasonable 
                        actions to prevent contamination of water 
                        resources by fuels or fuel additives, such as--
                                    ``(I) adoption of a prohibition on 
                                the delivery of gasoline to 
                                noncompliant facilities with 
                                underground storage tanks; or
                                    ``(II) operation of a statewide 
                                monitoring and compliance assurance 
                                system.
                    ``(E) Effect of failure of administrator to act.--
                If, by the date that is 180 days after the date of 
                receipt of a petition submitted under subparagraph (A), 
                the Administrator has not proposed to grant or deny the 
                petition under subparagraph (C), the petition shall be 
                deemed to be granted.
                    ``(F) Procedural requirements.--
                            ``(i) 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 actions on a 
                        petition submitted under subparagraph (A).
                            ``(ii) Public notice and opportunity for 
                        comment.--The Administrator shall provide 
                        public notice and opportunity for comment with 
                        respect to a petition submitted under 
                        subparagraph (A).
            ``(6) Limitation on mtbe content.--The Administrator shall 
        promulgate regulations applicable to each refiner, blender, or 
        importer of gasoline to ensure that gasoline sold or introduced 
        into commerce by the refiner, blender, or importer on or after 
        January 1, 2004, in an area has a content of methyl tertiary 
        butyl ether that is at a level that--
                    ``(A) the Administrator determines may not 
                reasonably be anticipated to endanger natural resources 
                and the public health; and
                    ``(B) does not exceed the annual average volume of 
                methyl tertiary butyl ether per gallon of gasoline used 
                in the area before 1995.''.

SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT.

    (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 
7545(k)) is amended--
            (1) in paragraph (1)--
                    (A) 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,'';
                    (B) in the first sentence, by inserting before the 
                period at the end the following: ``and opt-in areas 
                under paragraph (6)''; and
                    (C) by adding at the end the following:
                    ``(B) Adjustment of voc performance standard.--
                            ``(i) In general.--The Administrator may 
                        adjust the volatile organic compounds 
                        performance standard promulgated under 
                        subparagraph (A) in the case of a fuel 
                        formulation that achieves reductions in the 
                        quantity of mass emissions of carbon monoxide 
                        that are greater than or less than the 
                        reductions associated with a reformulated 
                        gasoline that contains 2.0 percent oxygen by 
                        weight and otherwise meets the requirements of 
                        this subsection.
                            ``(ii) Amount of adjustment.--The amount of 
                        an adjustment under clause (i) shall be based 
                        on the effect on ozone concentrations of the 
                        combined reductions in emissions of volatile 
                        organic compounds and reductions in emissions 
                        of carbon monoxide.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B)--
                            (i) by striking ``The oxygen'' and 
                        inserting the following:
                            ``(i) In general.--The oxygen''; and
                            (ii) by adding at the end the following:
                            ``(ii) Waiver for certain states.--The 
                        Administrator shall waive the application of 
                        clause (i) for any ozone nonattainment area in 
                        a State if the Governor of the State submits 
                        for such a waiver an application that--
                                    ``(I) demonstrates that the State 
                                is in full compliance with Federal 
                                regulations concerning the control and 
                                prevention of leaking underground 
                                storage tanks; or
                                    ``(II) provides a plan that 
                                outlines the measures the State will 
                                take to fully comply with the 
                                underground storage tank regulations by 
                                a date not later than 2 years after the 
                                receipt of the application of the 
                                Governor.
                            ``(iii) Effective date.--A waiver under 
                        clause (ii) shall become effective on the later 
                        of--
                                    ``(I) January 1 of the calendar 
                                year immediately following the calendar 
                                year during which the application for 
                                the waiver is received; or
                                    ``(II) the date that is 180 days 
                                after the date on which the application 
                                for the waiver is received.''; and
                    (B) by adding at the end the following:
                    ``(E) Aromatics.--The aromatic hydrocarbon content 
                of the gasoline shall not exceed 22 percent by 
                volume.'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A)(ii), by striking ``25 
                percent'' and inserting ``22 percent''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``Any reduction'' and 
                        inserting the following:
                            ``(iii) Treatment of greater reductions.--
                        Any reduction''; and
                            (ii) by adding at the end the following:
                            ``(iv) Anti-backsliding provision.--
                                    ``(I) In general.--Not later than 
                                June 1, 2000, the Administrator shall 
                                revise performance standards under this 
                                subparagraph as necessary to ensure 
                                that--
                                            ``(aa) the ozone-forming 
                                        potential, taking into account 
                                        all ozone precursors (including 
                                        volatile organic compounds, 
                                        oxides of nitrogen, and carbon 
                                        monoxide), of the aggregate 
                                        emissions during the high ozone 
                                        season (as determined by the 
                                        Administrator) from baseline 
                                        vehicles when using 
                                        reformulated gasoline does not 
                                        exceed the ozone-forming 
                                        potential of the aggregate 
                                        emissions during the high ozone 
                                        season from baseline vehicles 
                                        when using reformulated 
                                        gasoline that complies with the 
                                        regulations that were in effect 
                                        on January 1, 2000, and were 
                                        applicable to reformulated 
                                        gasoline sold in calendar year 
                                        2000 and subsequent calendar 
                                        years; and
                                            ``(bb) the aggregate 
                                        emissions of the pollutants 
                                        specified in subclause (II) 
                                        from baseline vehicles when 
                                        using reformulated gasoline do 
                                        not exceed the aggregate 
                                        emissions of those pollutants 
                                        from baseline vehicles when 
                                        using reformulated gasoline 
                                        that complies with the 
                                        regulations that were in effect 
                                        on January 1, 2000, and were 
                                        applicable to reformulated 
                                        gasolines sold in calendar year 
                                        2000 and subsequent calendar 
                                        years.
                                    ``(II) Specified pollutants.--The 
                                pollutants specified in this subclause 
                                are--
                                            ``(aa) toxics, categorized 
                                        by degrees of toxicity; and
                                            ``(bb) such other 
                                        pollutants, including 
                                        pollutants regulated under 
                                        section 108, and such 
                                        precursors to those pollutants, 
                                        as the Administrator determines 
                                        by regulation should be 
                                        controlled to prevent the 
                                        deterioration of air quality 
                                        and to achieve attainment of a 
                                        national ambient air quality 
                                        standard in 1 or more areas.''; 
                                        and
            (4) in paragraph (4)(B)--
                    (A) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and indenting 
                appropriately to reflect the amendments made by this 
                paragraph;
                    (B) by striking ``The Administrator'' and inserting 
                the following:
                            ``(i) In general.--The Administrator'';
                    (C) in clause (i) (as designated by subparagraph 
                (B))--
                            (i) in subclause (I) (as redesignated by 
                        subparagraph (A)), by striking ``, and'' and 
                        inserting a semicolon;
                            (ii) in subclause (II) (as redesignated by 
                        subparagraph (A))--
                                    (I) by striking ``achieve 
                                equivalent'' and inserting the 
                                following: ``achieve--
                                            ``(aa) equivalent'';
                                    (II) by striking the period at the 
                                end and inserting ``; or''; and
                                    (III) by adding at the end the 
                                following:
                                            ``(bb) combined reductions 
                                        in emissions of ozone forming 
                                        volatile organic compounds and 
                                        carbon monoxide that result in 
                                        a reduction in ozone 
                                        concentration, as provided in 
                                        clause (ii)(I), that is 
                                        equivalent to or greater than 
                                        the reduction in ozone 
                                        concentration achieved by a 
                                        reformulated gasoline meeting 
                                        the applicable requirements of 
                                        paragraph (3); and''; and
                            (iii) by adding at the end the following:
                                    ``(III) achieve equivalent or 
                                greater reductions in emissions of 
                                toxic air pollutants than are achieved 
                                by a reformulated gasoline meeting the 
                                applicable requirements of paragraph 
                                (3).''; and
                    (D) by adding at the end the following:
                            ``(ii) Carbon monoxide credit.--
                                    ``(I) In general.--In determining 
                                whether a fuel formulation or slate of 
                                fuel formulations achieves combined 
                                reductions in emissions of ozone 
                                forming volatile organic compounds and 
                                carbon monoxide that result in a 
                                reduction in ozone concentration that 
                                is equivalent to or greater than the 
                                reduction in ozone concentration 
                                achieved by a reformulated gasoline 
                                meeting the applicable requirements of 
                                paragraph (3), the Administrator--
                                            ``(aa) shall consider, to 
                                        the extent appropriate, the 
                                        change in carbon monoxide 
                                        emissions from baseline 
                                        vehicles attributable to an 
                                        oxygen content in the fuel 
                                        formulation or slate of fuel 
                                        formulations that exceeds 2.0 
                                        percent by weight; and
                                            ``(bb) may consider, to the 
                                        extent appropriate, the change 
                                        in carbon monoxide emissions 
                                        described in item (aa) from 
                                        vehicles other than baseline 
                                        vehicles.
                                    ``(II) Oxygen credits.--Any excess 
                                oxygen content that is taken into 
                                consideration in making a determination 
                                under subclause (I) may not be used to 
                                generate credits under paragraph 
                                (7)(A).
                                    ``(III) Relation to title i.--Any 
                                fuel formulation or slate of fuel 
                                formulations that is certified as 
                                equivalent or greater under this 
                                subparagraph, taking into consideration 
                                the combined reductions in emissions of 
                                volatile organic compounds and carbon 
                                monoxide, shall receive the same 
                                volatile organic compounds reduction 
                                credit for the purposes of subsections 
                                (b)(1) and (c)(2)(B) of section 182 as 
                                a fuel meeting the applicable 
                                requirements of paragraph (3).''.
    (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--
Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. 7511a(c)(2)(B)) is 
amended by adding at the end the following: ``An adjustment to the 
volatile organic compound emission reduction requirements under section 
211(k)(3)(B)(iv) shall be credited toward the requirement for VOC 
emissions reductions under this subparagraph.''.

SEC. 4. 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.--Upon the application of 
                        the Governor of a State, the Administrator 
                        shall apply the prohibition specified in 
                        paragraph (5) in any area in the State that is 
                        not a covered area or an area referred to in 
                        subparagraph (A)(i).
                            ``(ii) Publication of application.--As soon 
                        as practicable after receipt of an application 
                        under clause (i), the Administrator shall 
                        publish the application in the Federal 
                        Register.''.

SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (q); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Content of Gasoline.--
            ``(1) In general.--
                    ``(A) Regulations.--Not later than September 1, 
                2000, the Administrator shall promulgate regulations 
                applicable to each refiner, blender, or importer of 
                gasoline to ensure that gasoline sold or introduced 
                into commerce in the United States by the refiner, 
                blender, or importer complies with the renewable 
                content requirements of this subsection.
                    ``(B) Renewable content requirements.--
                            ``(i) In general.--All gasoline sold or 
                        introduced into commerce in the United States 
                        by a refiner, blender, or importer shall 
                        contain, on a quarterly average basis, a 
                        quantity of fuel derived from a renewable 
                        source (including biomass ethanol) that is not 
                        less than the applicable percentage by volume 
                        for the quarter.
                            ``(ii) Biomass ethanol.--For the purposes 
                        of clause (i), 1 gallon of biomass ethanol 
                        shall be considered to be the equivalent of 1.5 
                        gallons of fuel derived from a renewable 
                        source.
                            ``(iii) Applicable percentage.--For the 
                        purposes of clause (i), the applicable 
                        percentage for a quarter of a calendar year 
                        shall be determined in accordance 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.
                    ``(C) Fuel derived from a renewable source.--For 
                the purposes of this subsection, a fuel shall be 
                considered to be derived from a renewable source if the 
                fuel--
                            ``(i) is produced from grain, starch, 
                        oilseeds, or other biomass; and
                            ``(ii) is used to replace or reduce the 
                        quantity of fossil fuel present in a fuel 
                        mixture used to operate a motor vehicle.
                    ``(D) Biomass ethanol.--For the purposes of this 
                subsection, a fuel shall be considered to be biomass 
                ethanol if the fuel is ethanol derived from any 
                lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural commodities and 
                        residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(E) Credit program.--
                            ``(i) In general.--The regulations 
                        promulgated under this subsection shall provide 
                        for the generation of an appropriate amount of 
                        credits by a person that refines, blends, or 
                        imports gasoline that contains, on a quarterly 
                        average basis, a quantity of fuel derived from 
                        a renewable source or a quantity of biomass 
                        ethanol that is greater than the quantity 
                        required under subparagraph (B).
                            ``(ii) Use of credits.--The regulations 
                        shall provide that a person that generates the 
                        credits may use the credits, or transfer all or 
                        a portion of the credits to another person, for 
                        the purpose of complying with subparagraph (B).
            ``(2) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture, may 
                waive the requirements of paragraph (1)(B) in whole or 
                in part on petition by a State--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirements would severely harm the 
                        economy or environment of a State, a region, or 
                        the United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply or distribution 
                        capacity to meet the requirements of paragraph 
                        (1)(B).
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture--
                            ``(i) shall approve or deny a State 
                        petition for a waiver of the requirements of 
                        paragraph (1)(B) within 180 days after the date 
                        on which the petition is received; but
                            ``(ii) may extend that period for up to 60 
                        additional days to provide for public notice 
                        and opportunity for comment and for 
                        consideration of the comments submitted.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture.
                    ``(D) Oxygen content waivers.--The grant or denial 
                of a waiver under subsection (k)(2)(B) shall not affect 
                the requirements of this subsection.
            ``(3) Small refiners.--The regulations promulgated by the 
        Administrator under paragraph (1) may provide an exemption, in 
        whole or in part, for small refiners (as defined by the 
        Administrator).
            ``(4) Guidance for labeling.--After consultation with the 
        Secretary of Agriculture, the Administrator shall issue 
        guidance to the States for labeling, at the point of retail 
        sale--
                    ``(A) the fuel derived from a renewable source that 
                is contained in the fuel sold; and
                    ``(B) the major fuel additive components of the 
                fuel sold.
            ``(5) Reports to congress.--Not less often than every 3 
        years, the Administrator shall submit to Congress a report on--
                    ``(A) reductions in emissions of criteria air 
                pollutants listed under section 108 that result from 
                implementation of this subsection; and
                    ``(B) in consultation with the Secretary of Energy, 
                greenhouse gas emission reductions that result from 
                implementation of this subsection.
    ``(p) Renewable Content of Diesel Fuel.--
            ``(1) In general.--Not later than September 1, 2000, the 
        Administrator, after consideration of applicable economic and 
        environmental factors, shall promulgate regulations applicable 
        to each refiner, blender, or importer of diesel fuel to ensure 
        that the diesel fuel sold or introduced into commerce in the 
        United States by the refiner, blender, or importer complies 
        with the renewable content requirements established by the 
        Administrator under this subsection.
            ``(2) Elements of program.--To the extent that the 
        Administrator determines it to be appropriate, the 
        Administrator shall by regulation establish a program for 
        diesel fuel that has renewable content requirements similar to 
        the requirements of the program for gasoline under subsection 
        (o) in order to ensure the use of biodiesel fuel.''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n), or (o)''; 
                and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Prevention of Effects on Highway Apportionments.--
            (1) Surface transportation program.--Section 104(b)(3) of 
        title 23, United States Code, is amended by adding at the end 
        the following:
                    ``(C) Determination of estimated tax payments.--For 
                the purpose of determining under subparagraph (A)(iii) 
                the estimated tax payments attributable to highway 
                users in a State paid into the Highway Trust Fund 
                (other than the Mass Transit Account) in a fiscal year, 
                the amount paid into the Highway Trust Fund with 
                respect to the sale of gasohol or other fuels 
                containing alcohol by reason of the tax imposed by 
                section 4041 (relating to special fuels) or 4081 
                (relating to gasoline) of the Internal Revenue Code of 
                1986 shall be treated as being equal to the amount that 
                would have been so imposed with respect to that sale 
                without regard to the reduction in revenues resulting 
                from the application of the regulations promulgated 
                under section 211(o) of the Clean Air Act (42 U.S.C. 
                7545(o)) and the following provisions of the Internal 
                Revenue Code of 1986:
                            ``(i) Section 4041(b)(2) (relating to 
                        exemption for qualified methanol and ethanol 
                        fuel).
                            ``(ii) Section 4041(k) (relating to fuels 
                        containing alcohol).
                            ``(iii) Section 4041(m) (relating to 
                        certain alcohol fuels).
                            ``(iv) Section 4081(c) (relating to reduced 
                        rate on gasoline mixed with alcohol).''.
            (2) Minimum guarantee.--Section 105(f)(1) of title 23, 
        United States Code, is amended--
                    (A) by striking ``(1) In general.--Before'' and 
                inserting the following: ``(1) In general.--
                    ``(A) Adjustment.--Before''; and
                    (B) by adding at the end the following:
                    ``(B) Determination of estimated tax payments.--For 
                the purpose of determining under this subsection the 
                estimated tax payments attributable to highway users in 
                a State paid into the Highway Trust Fund (other than 
                the Mass Transit Account) in a fiscal year, the amount 
                paid into the Highway Trust Fund with respect to the 
                sale of gasohol or other fuels containing alcohol by 
                reason of the tax imposed by section 4041 (relating to 
                special fuels) or 4081 (relating to gasoline) of the 
                Internal Revenue Code of 1986 shall be treated as being 
                equal to the amount that would have been so imposed 
                with respect to that sale without regard to the 
                reduction in revenues resulting from the application of 
                the regulations promulgated under section 211(o) of the 
                Clean Air Act (42 U.S.C. 7545(o)) and the following 
                provisions of the Internal Revenue Code of 1986:
                            ``(i) Section 4041(b)(2) (relating to 
                        exemption for qualified methanol and ethanol 
                        fuel).
                            ``(ii) Section 4041(k) (relating to fuels 
                        containing alcohol).
                            ``(iii) Section 4041(m) (relating to 
                        certain alcohol fuels).
                            ``(iv) Section 4081(c) (relating to reduced 
                        rate on gasoline mixed with alcohol).''.

SEC. 6. UPDATING OF BASELINE YEAR.

    (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 
7545(k)) is amended--
            (1) in paragraph (8)--
                    (A) in subparagraph (A)--
                            (i) in the first sentence, by striking 
                        ``Within 1 year after the enactment of the 
                        Clean Air Act Amendments of 1990, the'' and 
                        inserting ``The''; and
                            (ii) by striking the second sentence;
                    (B) by striking ``calendar year 1990'' each place 
                it appears and inserting ``calendar year 1999''; and
                    (C) in subparagraph (E), by striking ``such 1990 
                gasoline'' and inserting ``such 1999 gasoline''; and
            (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by 
        striking ``1990'' each place it appears and inserting ``1999''.
    (b) Regulations.--As soon as practicable after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall revise the regulations promulgated under 
section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the 
amendments made by subsection (a).

SEC. 7. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Trust Fund Distribution.--Section 9004 of the Solid Waste 
Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the 
following:
    ``(f) Trust Fund Distribution.--
            ``(1) In general.--
                    ``(A) Amount and permitted use of distribution.--
                The Administrator shall distribute to States at least 
                85 percent of the funds appropriated to the 
                Environmental Protection Agency from the Leaking 
                Underground Storage Tank Trust Fund established by 
                section 9508 of the Internal Revenue Code of 1986 
                (referred to in this subsection as the `Trust Fund') 
                for each fiscal year for use in paying the reasonable 
                costs, incurred under cooperative agreements with 
                States, of--
                            ``(i) actions taken by a State under 
                        section 9003(h)(7)(A);
                            ``(ii) necessary administrative expenses 
                        directly related to corrective action and 
                        compensation programs under subsection (c)(1);
                            ``(iii) enforcement by a State or local 
                        government of a State program approved under 
                        this section or of State or local requirements 
                        regulating underground storage tanks that are 
                        similar or identical to this subtitle;
                            ``(iv) State or local corrective actions 
                        pursuant to regulations promulgated under 
                        section 9003(c)(4); or
                            ``(v) corrective action and compensation 
                        programs under subsection (c)(1) for releases 
                        from underground storage tanks regulated under 
                        this subtitle if, as determined by the State in 
                        accordance with guidelines developed between 
                        the Environmental Protection Agency and the 
                        States, the financial resources of an owner or 
                        operator (including resources provided by 
                        programs under subsection (c)(1)) are not 
                        adequate to pay for the cost of a corrective 
                        action without significantly impairing the 
                        ability of the owner or operator to continue in 
                        business.
                    ``(B) Nonpermitted uses.--Funds provided by the 
                Administrator under subparagraph (A) shall not be used 
                by a State to provide financial assistance to an owner 
                or operator to meet the requirements concerning 
                underground storage tanks contained in part 280 of 
                title 40, Code of Federal Regulations (as in effect on 
                the date of enactment of this subsection), except as 
                provided in subparagraph (A)(v), or similar 
                requirements in State programs approved under this 
                section or similar State or local provisions.
                    ``(C) Tanks within tribal jurisdiction.--The 
                Administrator, in coordination with Indian tribes, 
                shall--
                            ``(i) expeditiously develop and implement a 
                        strategy to--
                                    ``(I) take necessary corrective 
                                action in response to releases from 
                                leaking underground storage tanks 
                                located wholly within the exterior 
                                boundaries of an Indian reservation or 
                                other area within the jurisdiction of 
                                an Indian tribe, giving priority to 
                                releases that present the greatest 
                                threat to human health or the 
                                environment; and
                                    ``(II) implement and enforce 
                                requirements regulating underground 
                                storage tanks located wholly within the 
                                exterior boundaries of an Indian 
                                reservation or other area within the 
                                jurisdiction of an Indian tribe; and
                            ``(ii) not later than 2 years after the 
                        date of enactment of this subsection, and every 
                        2 years thereafter, submit to Congress a report 
                        summarizing the status of implementation of the 
                        leaking underground storage tank program 
                        located wholly within the exterior boundaries 
                        of an Indian reservation or other area within 
                        the jurisdiction of an Indian tribe.
            ``(2) Allocation.--
                    ``(A) Process.--Subject to subparagraph (B), in the 
                case of a State with which the Administrator has 
                entered into a cooperative agreement under section 
                9003(h)(7)(A), the Administrator shall distribute funds 
                from the Trust Fund to the State using the allocation 
                process developed by the Administrator for such 
                cooperative agreements.
                    ``(B) Revisions to process.--The Administrator may 
                revise the allocation process only after--
                            ``(i) consulting with State agencies 
                        responsible for overseeing corrective action 
                        for releases from underground storage tanks and 
                        with representatives of owners and operators; 
                        and
                            ``(ii) taking into consideration, at a 
                        minimum--
                                    ``(I) the total revenue received 
                                from each State into the Trust Fund;
                                    ``(II) the number of confirmed 
                                releases from leaking underground 
                                storage tanks in each State;
                                    ``(III) the number of notified 
                                petroleum storage tanks in each State;
                                    ``(IV) the percentage of the 
                                population of each State using ground 
                                water for any beneficial purpose;
                                    ``(V) the evaluation of the program 
                                performance of each State;
                                    ``(VI) the evaluation of the 
                                financial needs of each State; and
                                    ``(VII) the evaluation of the 
                                ability of each State to use the funds 
                                in any year.
            ``(3) Distributions to state agencies.--
                    ``(A) In general.--Distributions from the Trust 
                Fund under this subsection shall be made directly to 
                the State agency entering into a cooperative agreement 
                or enforcing the State program.
                    ``(B) Administrative expenses.--A State agency that 
                receives funds under this subsection shall limit the 
                proportion of those funds that are used to pay 
                administrative expenses to a percentage that the State 
                may establish by law.
            ``(4) Cost recovery prohibition.--Funds provided to States 
        from the Trust Fund to owners or operators for programs under 
        section 9004(c)(1) for releases from underground storage tanks 
        are not subject to cost recovery by the Administrator under 
        section 9003(h)(6).
            ``(5) Permitted uses.--In addition to uses authorized by 
        other provisions of this subtitle, the Administrator may use 
funds appropriated to the Environmental Protection Agency from the 
Trust Fund for enforcement of any regulation promulgated by the 
Administrator under this subtitle.''.
    (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the 
Internal Revenue Code of 1986 (relating to expenditures) is amended by 
striking ``to carry out section 9003(h)'' and all that follows and 
inserting ``to carry out--
                    ``(A) section 9003(h) of the Solid Waste Disposal 
                Act (as in effect on the date of enactment of the 
                Superfund Amendments and Reauthorization Act of 1986); 
                and
                    ``(B) section 9004(f) of the Solid Waste Disposal 
                Act (as in effect on the date of enactment of the 
                Renewable Fuels Act of 2000).''.
    (c) Studies.--Not later than 18 months after the date of enactment 
of this Act, the Administrator of the Environmental Protection Agency 
shall conduct--
            (1) a study to determine the corrosive effects of methyl 
        tertiary butyl ether and other widely used fuels and fuel 
        additives on underground storage tanks; and
            (2) a study to assess the potential public health and 
        environmental risks associated with the use of aboveground 
        storage tanks and the effectiveness of State and Federal 
        regulations or voluntary standards, in existence as of the time 
        of the study, to provide adequate protection of public health 
        and the environment.
    (d) Technical Amendments.--
            (1) 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''.
            (2) 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)''.
            (3) 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).''.
            (4) 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''.

SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM.

    (a) In General.--The Administrator of the Environmental Protection 
Agency may enter into cooperative agreements with the United States 
Geological Survey, the Department of Agriculture, States, local 
governments, private landowners, and other interested parties to 
establish voluntary pilot projects to protect the water quality of 
private wells and to provide technical assistance to users of water 
from private wells.
    (b) Limitation.--This section does not authorize the issuance of 
guidance or regulations regarding the use or protection of private 
wells.
                                 <all>
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