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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1297 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1297

 To amend the Clean Air Act to promote the use of advanced clean fuels 
 that help reduce air and water pollution and protect the environment.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 3, 2007

Mrs. Boxer (for herself, Ms. Collins, and Mr. Lieberman) 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 promote the use of advanced clean fuels 
 that help reduce air and water pollution and protect the environment.

    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 ``Advanced Clean Fuels Act of 2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) oil used for transportation contributes significantly 
        to air pollution, including global warming pollution, water 
        pollution, and other adverse impacts on the environment;
            (2) to reduce dangerous air and water pollution and other 
        adverse environmental impacts, the United States should 
        increasingly rely on advanced clean fuels for transportation;
            (3) fuels vary considerably with respect to--
                    (A) the potential impact of the fuels on air and 
                water pollution based on the type and quantity of 
                pollutants that result from the production, 
                distribution, and use of the fuel; and
                    (B) the potential impact of the fuels on other 
                aspects of the environment, including soil quality, 
                land conservation, wildlife habitat, and water 
                scarcity; and
            (4) it is urgent, necessary, and feasible to increase the 
        proportion of clean renewable fuels in the United States 
        transportation fuel supply in a manner that--
                    (A) promotes environmental protection;
                    (B) avoids environmental harm; and
                    (C) is economically efficient.

SEC. 3. DEFINITIONS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is 
amended--
            (1) by redesignating subparagraphs (A) through (D) as 
        subparagraphs (C), (P), (L), and (M), respectively;
            (2) by inserting before subparagraph (C) (as redesignated 
        by paragraph (1)) the following:
                    ``(A) Academy.--The term `Academy' means the 
                National Academy of Sciences.
                    ``(B) Adverse lifecycle impact.--The term `adverse 
                lifecycle impact' means, with respect to increases in 
                the volume of renewable fuel sold or dispensed to 
                consumers in the United States for a calendar year, 
                that the increases, as determined by the Administrator, 
                would reasonably be anticipated--
                            ``(i) to result in an inconsistency or 
                        material interference with the implementation 
                        of or compliance with any Federal environmental 
                        law (including a regulation);
                            ``(ii) to result in a material increase 
                        in--
                                    ``(I) air pollution, including 
                                global warming pollution;
                                    ``(II) water pollution; or
                                    ``(III) human exposure to 
                                pesticides;
                            ``(iii) to result in a substantial increase 
                        in deforestation on a global or national scale;
                            ``(iv) to result in a substantial adverse 
                        effect on land conservation and wildlife 
                        habitat;
                            ``(v) to result in any other substantial 
                        adverse effect on the environment;
                            ``(vi) to result in a substantial adverse 
                        effect on food or feed production or prices, as 
                        determined in consultation with the Secretary 
                        of Agriculture;
                            ``(vii) to result in a substantial adverse 
                        effect on long-term agricultural productivity, 
                        including effects on soils and water resources, 
                        as determined in consultation with the 
                        Secretary of Agriculture; or
                            ``(viii) not to increase the supply of 
                        clean, domestic energy;'';
            (3) in subparagraph (C) (as redesignated by paragraph (1)), 
        by striking clause (viii) and inserting the following:
                            ``(viii) separated food waste, yard waste, 
                        and lawn debris recovered from municipal solid 
                        waste.'';
            (4) by inserting after subparagraph (C) (as redesignated by 
        paragraph (1)) the following:
                    ``(D) Conventional transportation fuel.--The term 
                `conventional transportation fuel' means any fossil-
                fuel-based transportation fuel used in the United 
                States as of the date of enactment of the Advanced 
                Clean Fuels Act of 2007.
                    ``(E) Ecosystem conversion.--The term `ecosystem 
                conversion' means an alteration of an ecologically 
                significant native habitat (including modification of 
                hydrology and dominant vegetative and other species) to 
                an extent at which the native habitat no longer 
                supports most dominant native species or ecological 
                processes.
                    ``(F) Firewise zone.--The term `firewise zone' 
                means the immediate vicinity of a building or other 
                area regularly occupied by individuals, or any public 
                infrastructure, that is at risk of wildfire.
                    ``(G) Fuel emission baseline.--The term `fuel 
                emission baseline' means the average lifecycle 
                greenhouse gas emissions per unit of energy of the 
                fossil fuel component of conventional transportation 
                fuels in commerce in the United States in calendar year 
                2008, as determined by the Administrator under 
                paragraph (11).
                    ``(H) Fuel provider.--
                            ``(i) In general.--The term `fuel provider' 
                        means an obligated party (as described in 
                        section 80.1106 of title 40, Code of Federal 
                        Regulations (or a successor regulation)).
                            ``(ii) Inclusions.--The term `fuel 
                        provider' includes, as the Administrator 
                        determines to be appropriate, an individual or 
                        entity that produces, blends, or imports 
                        gasoline or any other transportation fuel in 
                        commerce in, or into, the United States.
                    ``(I) Greenhouse gas.--The term `greenhouse gas' 
                means any of--
                            ``(i) carbon dioxide;
                            ``(ii) methane;
                            ``(iii) nitrous oxide;
                            ``(iv) hydrofluorocarbons;
                            ``(v) perfluorocarbons; and
                            ``(vi) sulfur hexafluoride.
                    ``(J) Lifecycle greenhouse gas emissions.--The term 
                `lifecycle greenhouse gas emissions' means, with 
                respect to a transportation fuel, the aggregate 
                quantity of greenhouse gases emitted, directly or 
                indirectly, during production, feedstock production or 
                extraction, distribution, marketing, and use of the 
                transportation fuel, or waste disposal relating to the 
                transportation fuel, as determined by the Administrator 
                under paragraph (11)(B).
                    ``(K) Native habitat.--
                            ``(i) In general.--The term `native 
                        habitat' means dynamic groupings of native 
                        plant and animal communities that--
                                    ``(I) occur together on a landscape 
                                or in water; and
                                    ``(II) are connected through--
                                            ``(aa) similar ecological 
                                        processes;
                                            ``(bb) underlying 
                                        environmental features, such as 
                                        geology; or
                                            ``(cc) environmental 
                                        gradients, such as elevation.
                            ``(ii) Exclusion.--The term `native 
                        habitat' does not include land that is or has 
                        been under agricultural production.'';
            (5) in clause (i) of subparagraph (L) (as redesignated by 
        paragraph (1)), by striking ``The term'' and inserting ``Except 
        as otherwise provided in this subsection, the term'';
            (6) by inserting after subparagraph (M) (as redesignated by 
        paragraph (1)) the following:
                    ``(N) Technically infeasible.--The term 
                `technically infeasible', with respect to compliance 
                with a standard or requirement under this subsection, 
                means that adequate technology or infrastructure is not 
                reasonably anticipated to exist within a sufficient 
                time to permit compliance with the standard or 
                requirement.
                    ``(O) Transportation fuel.--The term 
                `transportation fuel' means fuel used to power motor 
                vehicles, nonroad engines, or aircraft.''.

SEC. 4. ADVANCED CLEAN FUEL PROGRAM.

    (a) Advanced Clean Fuel Performance Standard.--Section 211(o) of 
the Clean Air Act (42 U.S.C. 7545(o)) is amended by adding at the end 
the following:
            ``(11) Advanced clean fuel performance standard.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) National interest land.--The term 
                        `national interest land' includes land that is 
                        within the National Wildlife Refuge System, the 
                        National Park System, a National Monument, the 
                        National Wilderness Preservation System, the 
                        National Landscape Conservation System, or the 
                        National Forest System, that is Bureau of Land 
                        Management land protected by statute, 
                        proclamation, or regulation from commercial 
                        timber activities, or that is endangered or 
                        threatened species habitat, an old-growth 
                        forest, or an inventoried roadless area.
                            ``(ii) Phase ii renewable fuel.--The term 
                        `phase II renewable fuel' means renewable fuel 
                        the lifecycle greenhouse gas emissions of which 
                        are 50 percent to 74 percent lower than the 
                        fuel emission baseline.
                            ``(iii) Phase iii renewable fuel.--The term 
                        `phase III renewable fuel' means renewable fuel 
                        the lifecycle greenhouse gas emissions of which 
                        are at least 75 percent lower than the fuel 
                        emission baseline.
                            ``(iv) Renewable biomass.--
                                    ``(I) In general.--The term 
                                `renewable biomass' means any organic 
                                matter that is available on a renewable 
                                or recurring basis.
                                    ``(II) Inclusions.--The term 
                                `renewable biomass' includes--
                                            ``(aa) renewable plant 
                                        material, including--

                                                    ``(AA) feed grains;

                                                    ``(BB) other 
                                                agricultural 
                                                commodities;

                                                    ``(CC) other plants 
                                                and trees grown for 
                                                energy production; and

                                                    ``(DD) algae; and

                                            ``(bb) waste material, 
                                        including--

                                                    ``(AA) crop 
                                                residue;

                                                    ``(BB) other 
                                                vegetative waste 
                                                material (including 
                                                wood waste and wood 
                                                residues);

                                                    ``(CC) animal waste 
                                                and byproducts 
                                                (including fats, oils, 
                                                greases, and manure); 
                                                and

                                                    ``(DD) separated 
                                                food waste, yard waste, 
                                                and lawn debris 
                                                recovered from 
                                                municipal solid waste.

                                    ``(III) Exclusions.--The term 
                                `renewable biomass' does not include 
                                biomass derived from--
                                            ``(aa) land on which 
                                        ecosystem conversion has 
                                        occurred after the date of 
                                        enactment of the Advanced Clean 
                                        Fuels Act of 2007, as 
                                        determined by the 
                                        Administrator;
                                            ``(bb) land enrolled in the 
                                        conservation reserve program 
                                        established under subchapter B 
                                        of chapter 1 of subtitle D of 
                                        title XII of the Food Security 
                                        Act of 1985 (16 U.S.C. 3831 et 
                                        seq.) or the wetlands reserve 
                                        program established under 
                                        subchapter C of chapter 1 of 
                                        subtitle D of title XII of the 
                                        Food Security Act of 1985 (16 
                                        U.S.C. 3837 et seq.), unless 
                                        the biomass is produced in a 
                                        manner consistent with all 
                                        applicable guidelines, and 
                                        terms and conditions of any 
                                        applicable contract, under the 
                                        program;
                                            ``(cc) any national 
                                        interest land (other than land 
                                        in a firewise zone), except for 
                                        harvest residue, mill waste, or 
                                        pre-commercial thinnings 
                                        derived from national interest 
                                        land assigned to timber 
                                        production;
                                            ``(dd) recyclable 
                                        postconsumer waste paper;
                                            ``(ee) painted, treated, or 
                                        pressurized wood;
                                            ``(ff) wood contaminated 
                                        with plastic or metals; or
                                            ``(gg) any material 
                                        produced, harvested, acquired, 
                                        transported, or processed 
                                        pursuant to an exemption from 
                                        otherwise applicable Federal 
                                        environmental laws (including 
                                        regulations).
                            ``(v) Renewable fuel.--
                                    ``(I) In general.--The term 
                                `renewable fuel' means transportation 
                                fuel that is not an ether and that--
                                            ``(aa)(AA) is produced from 
                                        renewable biomass; or
                                            ``(BB) is natural gas 
                                        produced from a biogas source, 
                                        including a landfill, sewage 
                                        waste treatment plant, feedlot, 
                                        or other place where decaying 
                                        organic material is found;
                                            ``(bb) is used to replace 
                                        or reduce the quantity of 
                                        fossil fuel present in a fuel 
                                        mixture used for 
                                        transportation; and
                                            ``(cc) has lifecycle 
                                        greenhouse gas emissions that 
                                        are at least 20 percent lower 
                                        than the fuel emission 
                                        baseline.
                                    ``(II) Inclusion.--The term 
                                `renewable fuel' includes fuel meeting 
                                the criteria in subclause (I) that is--
                                            ``(aa) cellulosic biomass 
                                        ethanol and waste derived 
                                        ethanol;
                                            ``(bb) biodiesel (as 
                                        defined in section 312(f) of 
                                        the Energy Policy Act of 1992 
                                        (42 U.S.C. 13220(f))) and any 
                                        blending components derived 
                                        from renewable fuel (provided 
                                        that only the renewable fuel 
                                        portion of any such blending 
                                        component shall be considered 
                                        part of the applicable volume 
                                        under the renewable fuel 
                                        program established by this 
                                        subsection); or
                                            ``(cc) fuel produced from 
                                        pyrolysis or thermal conversion 
                                        of renewable biomass.
                    ``(B) Standard.--
                            ``(i) In general.--Not later than January 
                        1, 2010, the Administrator shall, by 
                        regulation--
                                    ``(I) establish a methodology for 
                                use in determining the lifecycle 
                                greenhouse gas emissions of 
                                transportation fuel in commerce, 
                                including--
                                            ``(aa) conventional 
                                        transportation fuel; and
                                            ``(bb) renewable fuel;
                                    ``(II) determine the fuel emission 
                                baseline;
                                    ``(III) establish a transportation 
                                fuel certification and marketing 
                                process--
                                            ``(aa) to certify fuels 
                                        that qualify as renewable fuel 
                                        under this paragraph;
                                            ``(bb) to determine the 
                                        lifecycle greenhouse gas 
                                        emissions of conventional 
                                        transportation fuels and 
                                        renewable fuels being sold or 
                                        introduced into commerce in the 
                                        United States; and
                                            ``(cc) to label and market 
                                        conventional transportation 
                                        fuel and renewable fuel in a 
                                        manner that indicates--

                                                    ``(AA) the status 
                                                of the fuel as 
                                                conventional 
                                                transportation fuel or 
                                                renewable fuel; and

                                                    ``(BB) the 
                                                lifecycle greenhouse 
                                                gas emissions of the 
                                                fuel; and

                                    ``(IV) in accordance with clause 
                                (ii), establish a requirement 
                                applicable to each fuel provider to 
                                reduce the average lifecycle greenhouse 
                                gas emissions per unit of energy of the 
                                aggregate quantity of transportation 
                                fuel produced, blended, or imported by 
                                the fuel provider to a level that is, 
                                to the maximum extent practicable--
                                            ``(aa) by not later than 
                                        calendar year 2011, at least 
                                        equal to or less than the fuel 
                                        emission baseline;
                                            ``(bb) by not later than 
                                        calendar year 2015, 5 percent 
                                        less than the fuel emission 
                                        baseline; and
                                            ``(cc) by not later than 
                                        calendar year 2020, 10 percent 
                                        less than the fuel emission 
                                        baseline.
                            ``(ii) Maximum reductions.--
                                    ``(I) In general.--In determining 
                                the maximum practicable level of 
                                reduction under clause (i)(IV), the 
                                Administrator shall--
                                            ``(aa) take into 
                                        consideration the results of 
                                        the applicable study carried 
                                        out under paragraph (12); and
                                            ``(bb) determine whether a 
                                        level of reduction--

                                                    ``(AA) is 
                                                technically infeasible; 
                                                or

                                                    ``(BB) would result 
                                                in 1 or more adverse 
                                                lifecycle impacts that 
                                                cannot be adequately 
                                                mitigated through 
                                                regulatory or 
                                                nonregulatory measures 
                                                under subclause (II).

                                    ``(II) Mitigation.--
                                            ``(aa) In general.--For the 
                                        purpose of making a 
                                        determination under subclause 
                                        (I)(bb)(BB), the Administrator, 
                                        in consultation with the heads 
                                        of other appropriate Federal 
                                        agencies, shall use the 
                                        existing authorities of the 
                                        Administrator to mitigate, to 
                                        the maximum extent practicable, 
                                        using regulatory or 
                                        nonregulatory approaches as the 
                                        Administrator determines to be 
                                        appropriate, adverse lifecycle 
                                        impacts in accordance with a 
                                        schedule that ensures that 
                                        mitigation measures are in 
                                        place by a date sufficient to 
                                        avoid adverse lifecycle 
                                        impacts.
                                            ``(bb) Air quality 
                                        impacts.--For the purpose of 
                                        this subclause, in the case of 
                                        any air quality-related adverse 
                                        lifecycle impact resulting from 
                                        emissions from motor vehicles 
                                        using renewable fuel, the 
                                        Administrator shall ensure, by 
                                        regulation promulgated under 
                                        this title, that gasoline 
                                        containing renewable fuel does 
                                        not result in--

                                                    ``(AA) average per-
                                                gallon motor vehicle 
                                                emissions (measured on 
                                                a mass basis) of air 
                                                pollutants in excess of 
                                                those emissions 
                                                attributable to 
                                                gasoline sold or 
                                                introduced into 
                                                commerce in the United 
                                                States in calendar year 
                                                2007; or

                                                    ``(BB) a violation 
                                                of any motor vehicle 
                                                emission or fuel 
                                                content limitation 
                                                under any other 
                                                provision of this Act.

                            ``(iii) Calendar year 2025 and 
                        thereafter.--For calendar year 2025, and each 
                        fifth calendar year thereafter, the 
                        Administrator, in consultation with the 
                        Secretary of Agriculture and the Secretary of 
                        Energy, shall revise the applicable performance 
                        standard to require that each fuel provider 
                        shall additionally reduce, to the maximum 
                        extent practicable, the average lifecycle 
                        greenhouse gas emissions per unit of energy of 
                        the aggregate quantity of transportation fuel 
                        introduced by the fuel provider into commerce 
                        in the United States.
                            ``(iv) Revision of regulations.--In 
                        accordance with the purposes of the Advanced 
                        Clean Fuels Act of 2007, the Administrator may, 
                        as appropriate, revise the regulations 
                        promulgated under clause (i) as necessary to 
                        reflect or respond to changes in the 
                        transportation fuel market or other relevant 
                        circumstances.
                            ``(v) Method of calculation.--In 
                        calculating the lifecycle greenhouse gas 
                        emissions of hydrogen or electricity (when used 
                        as a transportation fuel) pursuant to clause 
                        (i)(I), the Administrator shall--
                                    ``(I) include emissions resulting 
                                from the production of the hydrogen or 
                                electricity; and
                                    ``(II) consider to be equivalent to 
                                the energy delivered by 1 gallon of 
                                ethanol the energy delivered by--
                                            ``(aa) 6.4 kilowatt-hours 
                                        of electricity;
                                            ``(bb) 132 standard cubic 
                                        feet of hydrogen; or
                                            ``(cc) 1.25 gallons of 
                                        liquid hydrogen.
                    ``(C) Election to participate.--An electricity 
                provider may elect to participate in the program under 
                this section if the electricity provider--
                            ``(i) provides and separately tracks 
                        electricity for transportation through a meter 
                        that--
                                    ``(I) measures the electricity used 
                                for transportation separately from 
                                electricity used for other purposes; 
                                and
                                    ``(II) allows for load management 
                                and time-of-use rates; and
                            ``(ii) generates more than 15 percent of 
                        the electricity sold by the electricity 
                        provider from renewable energy sources.
                    ``(D) Credits.--
                            ``(i) In general.--The regulations 
                        promulgated to carry out this paragraph shall 
                        permit fuel providers to receive credits for 
                        achieving, during a calendar year, greater 
                        reductions in lifecycle greenhouse gas 
                        emissions of the fuel produced, blended, or 
                        imported by the fuel provider than are required 
                        under subparagraph (B)(i)(IV).
                            ``(ii) Method of calculation.--The number 
                        of credits received by a fuel provider as 
                        described clause (i) for a calendar year shall 
                        be calculated by multiplying--
                                    ``(I) the aggregate quantity of 
                                fuel produced, distributed, or imported 
                                by the fuel provider in the calendar 
                                year; and
                                    ``(II) the difference between--
                                            ``(aa) the lifecycle 
                                        greenhouse gas emissions of 
                                        that quantity of fuel; and
                                            ``(bb) the maximum 
                                        lifecycle greenhouse gas 
                                        emissions of that quantity of 
                                        fuel permitted for the calendar 
                                        year under subparagraph 
                                        (B)(i)(VI).
                    ``(E) Compliance.--Each fuel provider subject to 
                this paragraph shall demonstrate compliance with this 
                paragraph, including, as necessary, through the use of 
                credits banked or purchased.
                    ``(F) No effect on state authority or more 
                stringent requirements.--Nothing in this subsection--
                            ``(i) affects the authority of a State to 
                        establish, or to maintain in effect, any 
                        transportation fuel performance standard or 
                        other similar standard that is more stringent 
                        than a standard established under this 
                        paragraph; or
                            ``(ii) supercedes or otherwise affects any 
                        more stringent requirement under any other 
                        provision of this Act.''.
    (b) Advanced Clean Fuel Volume Standard.--Section 211(o)(2) of the 
Clean Air Act (42 U.S.C. 7545(o)(2)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking the subparagraph designation and 
                heading and all that follows through ``For the 
                purpose'' and inserting the following:
                    ``(B) Applicable volume.--For the purpose''; and
                    (B) by striking clauses (ii) through (iv); and
            (2) by adding at the end the following:
                    ``(C) Advanced clean fuel volume standard.--
                            ``(i) Definition of renewable fuel.--In 
                        this subparagraph, the term `renewable fuel' 
                        has the meaning given the term in paragraph 
                        (11).
                            ``(ii) Increase in renewable fuel volume.--
                                    ``(I) In general.--Unless, based on 
                                the results of the study carried out 
                                under paragraph (12), the Administrator 
                                determines that the total applicable 
                                volume of renewable fuel specified in 
                                clause (iii) for a calendar year would 
                                be technically infeasible, or would 
                                result in 1 or more adverse lifecycle 
                                impacts that cannot be adequately 
                                mitigated under subclause (V), the 
                                Administrator shall promulgate 
                                regulations that require the aggregate 
                                quantity of transportation fuel sold or 
                                introduced into commerce in the United 
                                States to contain such volume of 
                                renewable fuel as the Administrator 
                                determines will result in the total 
                                minimum volume for the calendar year 
                                specified in clause (iii).
                                    ``(II) Increase.--If the 
                                Administrator makes a determination 
                                under subclause (I), the Administrator 
                                may promulgate regulations that require 
                                such increase in the aggregate quantity 
                                of transportation fuel sold or 
                                introduced into commerce in the United 
                                States as the Administrator determines 
                                to be appropriate, with respect to the 
                                determination under subclause (I).
                                    ``(III) Schedule of regulations.--
                                In implementing subclauses (I) and 
                                (II), the Administrator shall--
                                            ``(aa) not later than 
                                        January 1, 2010, promulgate 
                                        regulations establishing any 
                                        total applicable volume 
                                        requirements for calendar years 
                                        2011 through 2013; and
                                            ``(bb) not later than 
                                        January 1, 2013, and every 3 
                                        years thereafter, promulgate 
                                        regulations establishing any 
                                        total applicable volume 
                                        requirements for the 3-
                                        calendar-year period beginning 
                                        with the calendar year after 
                                        the calendar year in which the 
                                        regulations are promulgated.
                                    ``(IV) Effective date.--The 
                                regulations promulgated under 
                                subclauses (I) and (II) shall take 
                                effect not sooner than 1 year after the 
                                date of promulgation of the 
                                regulations.
                                    ``(V) Mitigation.--
                                            ``(aa) In general.--For 
                                        purposes of this clause, the 
                                        Administrator, in consultation 
                                        with the heads of other 
                                        appropriate Federal agencies, 
                                        shall use the existing 
                                        authorities of the 
                                        Administrator to mitigate, to 
                                        the maximum extent practicable, 
                                        using regulatory or 
                                        nonregulatory approaches as the 
                                        Administrator determines to be 
                                        appropriate, adverse lifecycle 
                                        impacts in accordance with a 
                                        schedule that ensures that 
                                        mitigation measures are in 
                                        place by a date sufficient to 
                                        avoid adverse lifecycle 
                                        impacts.
                                            ``(bb) Air quality 
                                        impacts.--For the purpose of 
                                        this subclause, in the case of 
                                        any air quality-related adverse 
                                        lifecycle impact resulting from 
                                        emissions from motor vehicles 
                                        using renewable fuel, the 
                                        Administrator shall ensure, by 
                                        regulation, that gasoline 
                                        containing renewable fuel does 
                                        not result in--

                                                    ``(AA) average per 
                                                gallon motor vehicle 
                                                emissions (measured on 
                                                a mass basis) of air 
                                                pollutants in excess of 
                                                the quantity of those 
                                                emissions attributable 
                                                to gasoline sold or 
                                                introduced into 
                                                commerce in the United 
                                                States during calendar 
                                                year 2007; or

                                                    ``(BB) a violation 
                                                of any motor vehicle 
                                                emission or fuel 
                                                content limitation 
                                                under any other 
                                                provision of this Act.

                            ``(iii) Total advanced clean fuel volume.--
                                    ``(I) Calendar years 2011 through 
                                2025.--For the purpose of clause (ii), 
                                the total applicable volumes for any of 
                                calendar years 2011 through 2025 
                                (including the minimum additional 
                                volumes required under subparagraph 
                                (B)) shall be determined in accordance 
                                with the following table:

 
------------------------------------------------------------------------
                                      Total        Total        Total
                                    applicable   volume of    volume of
                                    volume of     phase II    phase III
          Calendar year             renewable    renewable    renewable
                                     fuel (in     fuel (in     fuel (in
                                   billions of  billions of  billions of
                                     gallons)     gallons)     gallons)
------------------------------------------------------------------------
2011.............................         12.0            0            0
2012.............................         14.0          0.5         0.25
2013.............................         16.0          0.5         0.25
2014.............................         18.0          1.5         0.75
2015.............................         20.0          1.5         0.75
2016.............................         22.0          3.0          1.5
2017.............................         24.0          3.0          1.5
2018.............................         26.0          5.0          2.5
2019.............................         28.0          5.0          2.5
2020.............................         30.0          8.0          4.0
2021.............................         31.0          8.0          4.0
2022.............................         32.0         11.0          6.0
2023.............................         33.0         11.0          6.0
2024.............................         34.0         11.0          6.0
2025.............................         35.0         13.0         8.0.
------------------------------------------------------------------------

                                    ``(II) Calendar year 2026 and 
                                thereafter.--Subject to clause (iv), 
                                for the purposes of clause (ii), the 
                                total applicable volume for calendar 
                                year 2026 and each calendar year 
                                thereafter shall be determined by the 
                                Administrator, in consultation with the 
                                Secretary of Agriculture and the 
                                Secretary of Energy, based on a review 
                                of the implementation of this 
                                subparagraph and subparagraph (B) 
                                during calendar years 2011 through 
                                2025, including a review of--
                                            ``(aa) the impact of 
                                        renewable fuel, phase II 
                                        renewable fuel, and phase III 
                                        renewable fuel on the 
                                        environment of the United 
                                        States and the world; and
                                            ``(bb) the impact of the 
                                        use of renewable fuel, phase II 
                                        renewable fuel, and phase III 
                                        renewable fuel on other 
                                        factors, including job 
                                        creation, rural economic 
                                        development, domestic energy 
                                        production, and the energy 
                                        security of the United States.
                                    ``(III) Revision of regulations.--
                                In accordance with the purposes of the 
                                Advanced Clean Fuels Act of 2007, the 
                                Administrator may, as appropriate, 
                                revise the regulations promulgated 
                                pursuant to clause (i) as the 
                                Administrator determines to be 
                                necessary to reflect or respond to--
                                            ``(aa) changes in the 
                                        transportation fuel market; or
                                            ``(bb) other relevant 
                                        circumstances.
                            ``(iv) Calculation of total advanced clean 
                        fuel volume.--For the purpose of clause 
                        (iii)(II), the total applicable volume for 
                        calendar year 2026 and each calendar year 
                        thereafter shall be equal to the product 
                        obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that, as 
                                applicable--
                                            ``(aa) 35,000,000,000 
                                        gallons of renewable fuel 
                                        (including up to 13,000,000,000 
                                        gallons of phase II renewable 
                                        fuel and up to 8,000,000,000 
                                        gallons of phase III renewable 
                                        fuel); bears to
                                            ``(bb) the number of 
                                        gallons of conventional 
                                        transportation fuel sold or 
                                        introduced into commerce in 
                                        calendar year 2025.
                            ``(v) No effect on more stringent 
                        requirements.--Nothing in this subparagraph 
                        supercedes or otherwise affects any more 
                        stringent requirement under any other provision 
                        of this Act.''.
    (c) Study.--Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) 
(as amended by subsection (a)) is amended by adding at the end the 
following:
            ``(12) Study on effects of increase in renewable fuel 
        volume.--
                    ``(A) In general.--The Administrator shall offer to 
                enter into an agreement with the Academy under which 
                the Academy shall periodically carry out, and submit to 
                Congress and the Administrator a report on the results 
                of, a study to determine whether the total applicable 
                volume of renewable fuel specified in paragraph 
                (2)(C)(iii) or the advanced clean fuel performance 
                standards specified in paragraph (11)(B) for any 
                calendar year would reasonably be anticipated--
                            ``(i) to result in 1 or more adverse 
                        lifecycle impacts; or
                            ``(ii) to be technically infeasible.
                    ``(B) Schedule of studies.--In implementing 
                subparagraph (A), the Administrator shall--
                            ``(i) not later than 90 days after the date 
                        of enactment of this paragraph, offer to enter 
                        into an agreement with the Academy under which 
                        the Academy shall conduct the study described 
                        in subparagraph (A) with respect to calendar 
                        years 2011 through 2013; and
                            ``(ii) not later than 3 years after the 
                        deadline specified in clause (i), and every 3 
                        years thereafter, offer to enter into an 
                        agreement with the Academy under which the 
                        Academy shall conduct the study described in 
                        subparagraph (A) with respect to the 3-
                        calendar-year period following the most recent 
                        3-calendar-year period studied by the Academy 
                        under this paragraph.
                    ``(C) Initial study of analytical methods.--The 
                first study conducted under this paragraph shall 
                include an identification and development of analytical 
                methods for use--
                            ``(i) in determining the lifecycle 
                        greenhouse gas emissions of conventional 
                        transportation fuel and renewable fuel; and
                            ``(ii) in assessing the impacts of 
                        increasing volumes of renewable fuel in the 
                        transportation fuel supply on--
                                    ``(I) the environment of the United 
                                States and the world, taking into 
                                consideration potential additional 
                                warming of the oceans and surface of 
                                Earth as a result of changes in land 
                                use and cover; and
                                    ``(II) food and feedstock supply 
                                and prices.''.
    (d) Opt-In Areas Under Reformulated Gasoline Program.--Section 
211(k)(6)(B) of the Clean Air Act (42 U.S.C. 7545(k)(6)(B)) is 
amended--
            (1) in the subparagraph heading, by striking ``Ozone 
        transport region'' and inserting ``Additional opt-in areas''; 
        and
            (2) in clause (i)(I)--
                    (A) by striking ``in the ozone transport region 
                established by section 184(a)''; and
                    (B) by striking ``(other than an area classified as 
                a marginal, moderate, serious, or severe ozone 
                nonattainment area under subpart 2 of part D of title 
                I)''.

SEC. 5. VOLUNTARY RENEWABLE FUELS LABELING PROGRAM.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) (as amended 
by section 4(c)) is amended by adding at the end the following:
            ``(13) Voluntary renewable fuels labeling program.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Program.--The term `Program' means 
                        the Voluntary Renewable Fuels Labeling Program 
                        established under subparagraph (B).
                            ``(ii) Renewable fuel.--The term `renewable 
                        fuel' has the meaning given the term in 
                        paragraph (11).
                            ``(iii) Voluntary management practice.--The 
                        term `voluntary management practice' means a 
                        practice that protects the ecological values 
                        (including water, soil, and biological 
                        diversity) of a landscape used to produce 
                        renewable biomass.
                    ``(B) Establishment.--The Administrator shall 
                establish a program, to be modeled on the Energy Star 
                Program, to promote consumer awareness of renewable 
                fuels that meet the requirements of subparagraph (C).
                    ``(C) Requirements.--The Program shall provide 
                authorization to applicable entities for the use of a 
                unique label for any renewable fuel that--
                            ``(i) has a lifecycle greenhouse gas 
                        emission rate that is at least 50 percent lower 
                        than the fuel emission baseline; and
                            ``(ii) complies with applicable voluntary 
                        management practices established under 
                        subparagraph (D)(i).
                    ``(D) Voluntary management practices, terms, and 
                procedures.--In carrying out the Program, the 
                Administrator shall establish--
                            ``(i) voluntary management practices for 
                        use in determining the eligibility of a 
                        renewable fuel for a unique renewable fuel 
                        label under the Program;
                            ``(ii) terms governing the use of a unique 
                        renewable fuel label; and
                            ``(iii) procedures for--
                                    ``(I) designating a renewable fuel 
                                to be eligible for a unique renewable 
                                fuel label;
                                    ``(II) verifying the values 
                                reported by producers of renewable 
                                fuel; and
                                    ``(III) monitoring compliance with 
                                the voluntary management practices 
                                established under clause (i).
                    ``(E) Label information.--The label to be applied 
                to each qualifying renewable fuel under the Program 
                shall indicate the lifecycle greenhouse gas emission 
                rate of the renewable fuel.
                    ``(F) Advisory committee.--
                            ``(i) Establishment.--The Administrator 
                        shall establish an independent advisory 
                        committee to assist the Administrator in 
                        carrying out the Program.
                            ``(ii) Duties.--Not less frequently than 
                        once every 2 years, the advisory committee 
                        shall provide recommendations to the 
                        Administrator for updates and improvements to 
                        the Program, including recommendations relating 
                        to the voluntary management practices 
                        established under subparagraph (D)(i).''.

SEC. 6. RESEARCH AND DEVELOPMENT IN SUPPORT OF ADVANCED CLEAN FUELS.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) (as amended 
by section 5) is amended by adding at the end the following:
            ``(14) Research and development in support of advanced 
        clean fuels.--
                    ``(A) Purpose.--The purpose of this paragraph is to 
                provide for research support to facilitate the 
                development of sustainable markets and technologies to 
                produce and use woody biomass and other cellulosic 
                biomass for the production of thermal and electric 
                energy, biofuels, and bioproducts.
                    ``(B) Grant program.--The Administrator shall 
                establish a program to provide to eligible entities (as 
                identified by the Administrator) grants for use in--
                            ``(i) providing financial support for not 
                        more than 4 nor less than 6 demonstration 
                        facilities that--
                                    ``(I) use woody biomass to deploy 
                                advanced technologies for production of 
                                thermal and electric energy, biofuels, 
                                and bioproducts; and
                                    ``(II) are targeted at regional 
                                feedstocks and markets;
                            ``(ii) conducting targeted research for the 
                        development of cellulosic ethanol and other 
                        liquid fuels from woody or other cellulosic 
                        biomass that may be used in transportation or 
                        stationary applications, such as industrial 
                        processes or industrial, commercial, and 
                        residential heating;
                            ``(iii) conducting research into the best 
                        scientifically-based and periodically-updated 
                        methods of assessing and certifying the impacts 
                        of each cellulosic biomass fuel with respect 
                        to--
                                    ``(I) the reduction in lifecycle 
                                greenhouse gas emissions of each fuel 
                                as compared to--
                                            ``(aa) the fuel emission 
                                        baseline; and
                                            ``(bb) the greenhouse gas 
                                        emissions of other sectors, 
                                        such as the agricultural, 
                                        industrial, and manufacturing 
                                        sectors;
                                    ``(II) the contribution of the 
                                cellulosic biomass fuel toward 
                                enhancing the energy security of the 
                                United States by displacing imported 
                                petroleum and petroleum products;
                                    ``(III) any impacts of the 
                                cellulosic biomass fuel on wildlife 
                                habitat, biodiversity, water quality, 
                                and air quality; and
                                    ``(IV) any effect of the cellulosic 
                                biomass fuel with respect to rural and 
                                regional economies;
                            ``(iv) conducting research to determine to 
                        what extent the use of cellulosic biomass fuels 
                        in the transportation sector would impact 
                        greenhouse gas emissions in other sectors, such 
                        as the agricultural, industrial, and 
                        manufacturing sectors;
                            ``(v) conducting research for the 
                        development of the supply infrastructure that 
                        may provide renewable biomass feedstocks in a 
                        consistent, predictable, and environmentally-
                        sustainable manner;
                            ``(vi) conducting research for the 
                        development of supply infrastructure that may 
                        provide cellulosic biomass fuels in a 
                        consistent, predictable, and environmentally-
                        sustainable manner; and
                            ``(vii) conducting policy research on the 
                        global movement of cellulosic biomass fuels in 
                        a consistent, predictable, and environmentally-
                        sustainable manner.
                    ``(C) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                section--
                            ``(i) $45,000,000 for fiscal year 2009;
                            ``(ii) $50,000,000 for fiscal year 2010;
                            ``(iii) $55,000,000 for fiscal year 2011;
                            ``(iv) $60,000,000 for fiscal year 2012; 
                        and
                            ``(v) $65,000,000 for fiscal year 2013.''.

SEC. 7. WATER QUALITY PROTECTION.

    Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is 
amended--
            (1) by striking ``nonroad vehicle (A) if in the judgment of 
        the Administrator'' and inserting the following: ``nonroad 
        vehicle--
                    ``(A) if, in the judgment of the Administrator, any 
                fuel or fuel additive or'';
            (2) by striking ``, or (B) if'' and inserting the 
        following: ``; or
                    ``(B) if''; and
            (3) in subparagraph (A), by striking ``air pollution 
        which'' and inserting ``air pollution or water pollution 
        (including any degradation in the quality of groundwater) 
        that''.
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