II 

109TH CONGRESS 

1ST SESSION S. 650

To amend the Clean Air Act to increase production and use of renewable 

fuel and to increase the energy independence of the United States, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2005

Mr. LUGAR (for himself, Mr. HARKIN, Mr. HAGEL, Mr. NELSON of Nebraska, 

Mr. GRASSLEY, Mr. CONRAD, Mr. FRIST, Mr. JOHNSON, Mr. TALENT, 

Mr. DORGAN, Mr. COLEMAN, Mr. DURBIN, Mr. THUNE, Mr. BAYH, Mr. 

DEWINE, Ms. STABENOW, Mr. BUNNING, Mr. DAYTON, Mr. OBAMA, Mr. 

SALAZAR, and Mr. BOND) 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 increase production and 

use of renewable fuel and to increase the energy independence of the United States, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Fuels Security Act of 2005’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows:
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Sec. 1. Short title; table of contents. 

TITLE I—GENERAL PROVISIONS 

Sec. 101. Renewable content of motor vehicle fuel. 

Sec. 102. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement. 

Sec. 103. Data collection. 

TITLE II—FEDERAL REFORMULATED FUELS 

Sec. 201. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 202. Public health and environmental impacts of fuels and fuel additives. 

Sec. 203. Analyses of motor vehicle fuel changes. 

Sec. 204. Additional opt-in areas under reformulated gasoline program. 

Sec. 205. Federal enforcement of State fuels requirements. 

Sec. 206. Fuel system requirements harmonization study. 

Sec. 207. Review of Federal procurement initiatives relating to use of recycled 

products and fleet and transportation efficiency.

1 TITLE I—GENERAL PROVISIONS 

2 SEC. 101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL. 

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

4 (42 U.S.C. 7545) is amended—

5 (1) by redesignating subsection (o) as sub6 section (q); and 

7 (2) by inserting after subsection (n) the fol8 lowing: 

9 ‘‘(o) RENEWABLE FUEL PROGRAM.—

10 ‘‘(1) DEFINITIONS.—In this subsection: 

11 ‘‘(A) ETHANOL.—

12 ‘‘(i) CELLULOSIC BIOMASS ETH13 ANOL.—The term ‘cellulosic biomass eth14 anol’ means ethanol derived from any 

15 lignocellulosic or hemicellulosic matter that 

16 is available on a renewable or recurring 

17 basis, including—
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1 ‘‘(I) dedicated energy crops and 

2 trees; 

3 ‘‘(II) wood and wood residues; 

4 ‘‘(III) plants; 

5 ‘‘(IV) grasses; 

6 ‘‘(V) agricultural residues; and 

7 ‘‘(VI) fibers. 

8 ‘‘(ii) WASTE DERIVED ETHANOL.—

9 The term ‘waste derived ethanol’ means 

10 ethanol derived from—

11 ‘‘(I) animal wastes, including 

12 poultry fats and poultry wastes, and 

13 other waste materials; or 

14 ‘‘(II) municipal solid waste. 

15 ‘‘(B) RENEWABLE FUEL.—

16 ‘‘(i) IN GENERAL.—The term ‘renew17 able fuel’ means motor vehicle fuel that—

18 ‘‘(I)(aa) is produced from grain, 

19 starch, oilseeds, or other biomass; or 

20 ‘‘(bb) is natural gas produced 

21 from a biogas source, including a 

22 landfill, sewage waste treatment plant, 

23 feedlot, or other place where decaying 

24 organic material is found; and 
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1 ‘‘(II) is used to replace or reduce 

2 the quantity of fossil fuel present in a 

3 fuel mixture used to operate a motor 

4 vehicle. 

5 ‘‘(ii) INCLUSION.—The term ‘renew6 able fuel’ includes—

7 ‘‘(I) cellulosic biomass ethanol; 

8 ‘‘(II) waste derived ethanol; 

9 ‘‘(III) biodiesel (as defined in 

10 section 312(f) of the Energy Policy 

11 Act of 1992 (42 U.S.C. 13220(f)); 

12 and 

13 ‘‘(IV) any blending components 

14 derived from renewable fuel, except 

15 that only the renewable fuel portion of 

16 any such blending component shall be 

17 considered part of the applicable vol18 ume under the renewable fuel pro19 gram established by this subsection. 

20 ‘‘(C) SMALL REFINERY.—The term ‘small 

21 refinery’ means a refinery for which average ag22 gregate daily crude oil throughput for the cal23 endar year (as determined by dividing the ag24 gregate throughput for the calendar year by the 
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1 number of days in the calendar year) does not 

2 exceed 75,000 barrels. 

3 ‘‘(2) RENEWABLE FUEL PROGRAM.—

4 ‘‘(A) IN GENERAL.—

5 ‘‘(i) REGULATIONS.—Not later than 1 

6 year after the date of enactment of this 

7 subsection, the Administrator shall promul8 gate regulations ensuring that motor vehi9 cle fuel sold or dispensed to consumers in 

10 the contiguous United States, on an an11 nual average basis, contains the applicable 

12 volume of renewable fuel specified in sub13 paragraph (B). 

14 ‘‘(ii) COMPLIANCE.—Regardless of the 

15 date of promulgation, the regulations shall 

16 contain compliance provisions for refiners, 

17 blenders, and importers, as appropriate, to 

18 ensure that the requirements of this sub19 section are met, but shall not restrict 

20 where renewable fuel can be used, or im21 pose any per-gallon obligation for the use 

22 of renewable fuel. 

23 ‘‘(iii) NO REGULATIONS.—If the Ad24 ministrator does not promulgate the regu25 lations, the applicable percentage referred
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1 to in paragraph (3), on a volume percent2 age of gasoline basis, shall be 3.2 in 2006. 

3 ‘‘(B) APPLICABLE VOLUME.—

4 ‘‘(i) CALENDAR YEARS 2006 THROUGH

5 2012.—For the purpose of subparagraph 

6 (A), the applicable volume for any of cal7 endar years 2006 through 2012 shall be 

8 determined in accordance with the fol9 lowing table:

‘‘Applicable volume of renewable fuel 

Calendar year: (In billions of gallons) 

2006 ..................................................................................... 4.0

2007 ..................................................................................... 4.7

2008 ..................................................................................... 5.4

2009 ..................................................................................... 6.1

2010 ..................................................................................... 6.8

2011 ..................................................................................... 7.4

2012 ..................................................................................... 8.0

10 ‘‘(ii) CALENDAR YEARS 2013 AND

11 THEREAFTER.—For the purpose of sub12 paragraph (A), the applicable volume for 

13 calendar year 2013 and each calendar year 

14 thereafter shall be determined by the Ad15 ministrator, in coordination with the Sec16 retary of Energy and the Secretary of Ag17 riculture, based on a review of the imple18 mentation of the program during calendar 

19 years 2006 through 2012, including a re20 view of—
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1 ‘‘(I) the impact of the use of re2 newable fuels on the environment, air 

3 quality, energy security, job creation, 

4 and rural economic development; and 

5 ‘‘(II) the expected annual rate of 

6 future production of renewable fuels, 

7 including cellulosic ethanol. 

8 ‘‘(iii) LIMITATION.—An increase in 

9 the applicable volume for a calendar year 

10 under clause (ii) shall be not less than the 

11 product obtained by multiplying—

12 ‘‘(I) the number of gallons of 

13 gasoline that the Administrator esti14 mates will be sold or introduced into 

15 commerce during the calendar year; 

16 and 

17 ‘‘(II) the quotient obtained by di18 viding—

19 ‘‘(aa) 8,000,000,000; by 

20 ‘‘(bb) the number of gallons 

21 of gasoline sold or introduced 

22 into commerce during calendar 

23 year 2012. 

24 ‘‘(3) APPLICABLE PERCENTAGES.—
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1 ‘‘(A) PROVISION OF ESTIMATE OF VOL2 UMES OF GASOLINE SALES.—Not later than Oc3 tober 31 of each of calendar years 2006 

4 through 2011, the Administrator of the Energy 

5 Information Administration shall provide to the 

6 Administrator of the Environmental Protection 

7 Agency an estimate of the volumes of gasoline 

8 that will be sold or introduced into commerce in 

9 the United States during the following calendar 

10 year. 

11 ‘‘(B) DETERMINATION OF APPLICABLE

12 PERCENTAGES.—

13 ‘‘(i) IN GENERAL.—Not later than 

14 November 30 of each of calendar years 

15 2006 through 2011, based on the estimate 

16 provided under subparagraph (A), the Ad17 ministrator shall determine and publish in 

18 the Federal Register, with respect to the 

19 following calendar year, the renewable fuel 

20 obligation that ensures that the require21 ments under paragraph (2) are met. 

22 ‘‘(ii) REQUIRED ELEMENTS.—The re23 newable fuel obligation determined for a 

24 calendar year under clause (i) shall—
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1 ‘‘(I) be applicable to refiners, 

2 blenders, and importers, as appro3 priate; 

4 ‘‘(II) be expressed in terms of a 

5 volume percentage of gasoline sold or 

6 introduced into commerce; and 

7 ‘‘(III) subject to subparagraph 

8 (C)(i), consist of a single applicable 

9 percentage that applies to all cat10 egories of persons specified in sub11 clause (I). 

12 ‘‘(C) ADJUSTMENTS.—In determining the 

13 applicable percentage for a calendar year, the 

14 Administrator shall make adjustments—

15 ‘‘(i) to prevent the imposition of re16 dundant obligations to any person specified 

17 in subparagraph (B)(ii)(I); and 

18 ‘‘(ii) to account for the use of renew19 able fuel during the previous calendar year 

20 by small refineries that are exempt under 

21 paragraph (11). 

22 ‘‘(4) EQUIVALENCY.—For the purpose of para23 graph (2), 1 gallon of either cellulosic biomass eth24 anol or waste derived ethanol shall be considered to 

25 be the equivalent of 2.5 gallons of renewable fuel. 
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1 ‘‘(5) CREDIT PROGRAM.—

2 ‘‘(A) REGULATIONS.—The regulations pro3 mulgated to carry out this subsection shall pro4 vide for—

5 ‘‘(i) the generation of an appropriate 

6 amount of credits by any person that re7 fines, blends, or imports gasoline that con8 tains a quantity of renewable fuel that is 

9 greater than the quantity required under 

10 paragraph (2); 

11 ‘‘(ii) the generation of an appropriate 

12 amount of credits for biodiesel fuel; and 

13 ‘‘(iii) if a small refinery notifies the 

14 Administrator that the small refinery 

15 waives the exemption provided by this sub16 section, the generation of credits by the 

17 small refinery beginning in the year fol18 lowing the notification. 

19 ‘‘(B) USE OF CREDITS.—A person that 

20 generates credits under subparagraph (A) may 

21 use the credits, or transfer all or a portion of 

22 the credits to another person, for the purpose 

23 of complying with paragraph (2). 

24 ‘‘(C) LIFE OF CREDITS.—A credit gen25 erated under this paragraph shall be valid to
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1 demonstrate compliance for the calendar year in 

2 which the credit was generated. 

3 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

4 CREDITS.—The regulations promulgated to 

5 carry out this subsection shall include provi6 sions permitting any person that is unable to 

7 generate or purchase sufficient credits to meet 

8 the requirement under paragraph (2) to carry 

9 forward a renewables deficit if, for the calendar 

10 year following the year in which the renewables 

11 deficit is created—

12 ‘‘(i) the person achieves compliance 

13 with the renewables requirement under 

14 paragraph (2); and 

15 ‘‘(ii) generates or purchases additional 

16 renewables credits to offset the renewables 

17 deficit of the preceding year. 

18 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

19 FUEL USE.—

20 ‘‘(A) STUDY.—For each of calendar years 

21 2006 through 2012, the Administrator of the 

22 Energy Information Administration shall con23 duct a study of renewable fuels blending to de24 termine whether there are excessive seasonal 

25 variations in the use of renewable fuels. 
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1 ‘‘(B) REGULATION OF EXCESSIVE SEA2 SONAL VARIATIONS.—If, for any calendar year, 

3 the Administrator of the Energy Information 

4 Administration, based on the study under sub5 paragraph (A), makes the determinations speci6 fied in subparagraph (C), the Administrator 

7 shall promulgate regulations to ensure that 35 

8 percent or more of the quantity of renewable 

9 fuels necessary to meet the requirements under 

10 paragraph (2) is used during each of the peri11 ods specified in subparagraph (D) of each sub12 sequent calendar year. 

13 ‘‘(C) DETERMINATIONS.—The determina14 tions referred to in subparagraph (B) are 

15 that—

16 ‘‘(i) less than 35 percent of the quan17 tity of renewable fuels necessary to meet 

18 the requirements under paragraph (2) has 

19 been used during 1 of the periods specified 

20 in subparagraph (D) of the calendar year; 

21 ‘‘(ii) a pattern of excessive seasonal 

22 variation described in clause (i) will con23 tinue in subsequent calendar years; and 

24 ‘‘(iii) promulgating regulations or 

25 other requirements to impose a 35 percent 
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1 or more seasonal use of renewable fuels 

2 will not prevent or interfere with the at3 tainment of national ambient air quality 

4 standards or significantly increase the 

5 price of motor fuels to the consumer. 

6 ‘‘(D) PERIODS.—The 2 periods referred to 

7 in this paragraph are—

8 ‘‘(i) April through September; and 

9 ‘‘(ii) January through March and Oc10 tober through December. 

11 ‘‘(E) EXCLUSIONS.—Renewable fuels 

12 blended or consumed in 2006 in a State that 

13 has received a waiver under section 209(b) shall 

14 not be included in the study under subpara15 graph (A). 

16 ‘‘(7) WAIVERS.—

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

18 consultation with the Secretary of Agriculture 

19 and the Secretary of Energy, may waive the re20 quirements under paragraph (2), in whole or in 

21 part, on a petition by 1 or more States by re22 ducing the national quantity of renewable fuel 

23 required under this subsection—

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

25 Administrator, after public notice and op-
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1 portunity for comment, that implementa2 tion of the requirement would severely 

3 harm the economy or environment of a 

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

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

6 Administrator, after public notice and op7 portunity for comment, that there is an in8 adequate domestic supply to meet the re9 quirement. 

10 ‘‘(B) PETITIONS FOR WAIVERS.—Not later 

11 than 90 days after the date on which a petition 

12 is received by the Administrator under subpara13 graph (A), the Administrator, in consultation 

14 with the Secretary of Agriculture and the Sec15 retary of Energy, shall approve or disapprove 

16 the petition. 

17 ‘‘(C) TERMINATION OF WAIVERS.—A waiv18 er granted under subparagraph (A) shall termi19 nate on the date that is 1 year after the date 

20 on which the waiver was granted, but may be 

21 renewed by the Administrator, after consulta22 tion with the Secretary of Agriculture and the 

23 Secretary of Energy. 

24 ‘‘(8) SMALL REFINERIES.—
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1 ‘‘(A) IN GENERAL.—Paragraph (2) shall 

2 not apply to small refineries until the first cal3 endar year beginning more than 5 years after 

4 the first year set forth in the table in paragraph 

5 (2)(B)(i). 

6 ‘‘(B) STUDY.—Not later than December 

7 31, 2008, the Secretary of Energy shall com8 plete for the Administrator a study to deter9 mine whether the requirements under para10 graph (2) would impose a disproportionate eco11 nomic hardship on small refineries. 

12 ‘‘(C) SMALL REFINERIES AND ECONOMIC

13 HARDSHIP.—For any small refinery that the 

14 Secretary of Energy determines would experi15 ence a disproportionate economic hardship, the 

16 Administrator shall extend the small refinery 

17 exemption for the small refinery for not less 

18 than 2 additional years. 

19 ‘‘(D) ECONOMIC HARDSHIP.—

20 ‘‘(i) EXTENSION OF EXEMPTION.—A 

21 small refinery may at any time petition the 

22 Administrator for an extension of the ex23 emption from the requirements under 

24 paragraph (2) for the reason of dispropor25 tionate economic hardship.
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1 ‘‘(ii) EVALUATION.—In evaluating a 

2 hardship petition, the Administrator, in 

3 consultation with the Secretary of Energy, 

4 shall consider the findings of the study in 

5 addition to other economic factors. 

6 ‘‘(iii) DEADLINE FOR ACTION ON PE7 TITIONS.—The Administrator shall act on 

8 any petition submitted by a small refinery 

9 for a hardship exemption not later than 90 

10 days after the receipt of the petition. 

11 ‘‘(E) CREDIT PROGRAM.—Paragraph 

12 (6)(A)(iii) shall apply to each small refinery 

13 that waives an exemption under this paragraph. 

14 ‘‘(F) OPT-IN FOR SMALL REFINERS.—A 

15 small refinery shall be subject to paragraph (2) 

16 if the small refinery notifies the Administrator 

17 that the small refinery waives the exemption 

18 under subparagraph (C).’’. 

19 (b) PENALTIES AND ENFORCEMENT.—Section 

20 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

21 amended—

22 (1) in paragraph (1)—

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

24 (n)’’ and inserting ‘‘(n), or (o)’’ each place it 

25 appears; and 
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1 (B) in the second sentence, by striking ‘‘or 

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

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

4 striking ‘‘and (n)’’ and inserting ‘‘(n), and (o)’’ each 

5 place it appears. 

6 SEC. 102. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE 

7 AND BIODIESEL PURCHASING REQUIRE8 MENT. 

9 Title III of the Energy Policy Act of 1992 is amended 

10 by striking section 306 (42 U.S.C. 13215) and inserting 

11 the following: 

12 ‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASO13 LINE AND BIODIESEL PURCHASING REQUIRE14 MENT. 

15 ‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of 

16 each Federal agency shall ensure that, in areas in which 

17 ethanol-blended gasoline is reasonably available at a gen18 erally competitive price, the Federal agency purchases eth19 anol-blended gasoline containing at least 10 percent eth20 anol rather than nonethanol-blended gasoline, for use in 

21 vehicles used by the agency that use gasoline. 

22 ‘‘(b) BIODIESEL.—

23 ‘‘(1) DEFINITION OF BIODIESEL.—In this sub24 section, the term ‘biodiesel’ has the meaning given 

25 the term in section 312(f). 
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1 ‘‘(2) REQUIREMENT.—The head of each Fed2 eral agency shall ensure that the Federal agency 

3 purchases, for use in fueling fleet vehicles that use 

4 diesel fuel used by the Federal agency at the loca5 tion at which fleet vehicles of the Federal agency are 

6 centrally fueled, in areas in which the biodiesel7 blended diesel fuel described in subparagraphs (A) 

8 and (B) is available at a generally competitive 

9 price—

10 ‘‘(A) as of the date that is 5 years after 

11 the date of enactment of this paragraph, bio12 diesel-blended diesel fuel that contains at least 

13 2 percent biodiesel, rather than nonbiodiesel14 blended diesel fuel; and 

15 ‘‘(B) as of the date that is 10 years after 

16 the date of enactment of this paragraph, bio17 diesel-blended diesel fuel that contains at least 

18 20 percent biodiesel, rather than nonbiodiesel19 blended diesel fuel. 

20 ‘‘(3) REQUIREMENT OF FEDERAL LAW.—The 

21 provisions of this subsection shall not be considered 

22 a requirement of Federal law for the purposes of 

23 section 312. 
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1 ‘‘(c) EXEMPTION.—This section does not apply to 

2 fuel used in vehicles excluded from the definition of ‘fleet’ 

3 by subparagraphs (A) through (H) of section 301(9).’’. 

4 SEC. 103. DATA COLLECTION. 

5 Section 205 of the Department of Energy Organiza6 tion Act (42 U.S.C. 7135) is amended by adding at the 

7 end the following: 

8 ‘‘(m)(1) In order to improve the ability to evaluate 

9 the effectiveness of the renewable fuels mandate of the 

10 United States, the Administrator shall conduct and pub11 lish the results of a survey of renewable fuels demand in 

12 the motor vehicle fuels market in the United States 

13 monthly, and in a manner designed to protect the con14 fidentiality of individual responses. 

15 ‘‘(2) In conducting the survey, the Administrator 

16 shall collect information both on a national and regional 

17 basis, including—

18 ‘‘(A) information on—

19 ‘‘(i) the quantity of renewable fuels pro20 duced; 

21 ‘‘(ii) the quantity of renewable fuels blend22 ed; 

23 ‘‘(iii) the quantity of renewable fuels im24 ported; and 
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1 ‘‘(iv) the quantity of renewable fuels de2 manded; and 

3 ‘‘(B) market price data.’’. 

4 TITLE II—FEDERAL 

5 REFORMULATED FUELS 

6 SEC. 201. ELIMINATION OF OXYGEN CONTENT REQUIRE7 MENT FOR REFORMULATED GASOLINE. 

8 (a) ELIMINATION.—

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

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

11 (A) in paragraph (2)—

12 (i) in the second sentence of subpara13 graph (A), by striking ‘‘(including the oxy14 gen content requirement contained in sub15 paragraph (B))’’; 

16 (ii) by striking subparagraph (B); and 

17 (iii) by redesignating subparagraphs 

18 (C) and (D) as subparagraphs (B) and 

19 (C), respectively; 

20 (B) in paragraph (3)(A), by striking clause 

21 (v); and 

22 (C) in paragraph (7)—

23 (i) in subparagraph (A)—

24 (I) by striking clause (i); and
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1 (II) by redesignating clauses (ii) 

2 and (iii) as clauses (i) and (ii), respec3 tively; and 

4 (ii) in subparagraph (C)—

5 (I) by striking clause (ii); and 

6 (II) by redesignating clause (iii) 

7 as clause (ii). 

8 (2) EFFECTIVE DATE.—The amendments made 

9 by paragraph (1) take effect on the date that is 1 

10 year after the date of enactment of this Act, except 

11 that the amendments shall take effect upon that 

12 date of enactment in any State that has received a 

13 waiver under section 209(b) of the Clean Air Act 

14 (42 U.S.C. 7543(b)). 

15 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS16 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

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

18 (1) by striking ‘‘Within 1 year after the enact19 ment of the Clean Air Act Amendments of 1990,’’ 

20 and inserting the following: 

21 ‘‘(A) IN GENERAL.—Not later than No22 vember 15, 1991,’’; and 

23 (2) by adding at the end the following: 
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1 ‘‘(B) MAINTENANCE OF TOXIC AIR POL2 LUTANT EMISSIONS REDUCTIONS FROM REFOR3 MULATED GASOLINE.— 

4 ‘‘(i) DEFINITION OF PADD.—In this 

5 subparagraph, the term ‘PADD’ means a 

6 Petroleum Administration for Defense Dis7 trict. 

8 ‘‘(ii) REGULATIONS REGARDING EMIS9 SIONS OF TOXIC AIR POLLUTANTS.—Not 

10 later than 270 days after the date of en11 actment of this subparagraph, the Admin12 istrator shall establish, for each refinery or 

13 importer, standards for toxic air pollutants 

14 from use of the reformulated gasoline pro15 duced or distributed by the refinery or im16 porter that maintain the reduction of the 

17 average annual aggregate emissions of 

18 toxic air pollutants for reformulated gaso19 line produced or distributed by the refinery 

20 or importer during calendar years 2001 

21 and 2002, determined on the basis of data 

22 collected by the Administrator with respect 

23 to the refinery or importer. 

24 ‘‘(iii) STANDARDS APPLICABLE TO

25 SPECIFIC REFINERIES OR IMPORTERS.—
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1 ‘‘(I) APPLICABILITY OF STAND2 ARDS.—For any calendar year, the 

3 standards applicable to a refinery or 

4 importer under clause (ii) shall apply 

5 to the quantity of gasoline produced 

6 or distributed by the refinery or im7 porter in the calendar year only to the 

8 extent that the quantity is less than 

9 or equal to the average annual quan10 tity of reformulated gasoline produced 

11 or distributed by the refinery or im12 porter during calendar years 2001 

13 and 2002. 

14 ‘‘(II) APPLICABILITY OF OTHER

15 STANDARDS.—For any calendar year, 

16 the quantity of gasoline produced or 

17 distributed by a refinery or importer 

18 that is in excess of the quantity sub19 ject to subclause (I) shall be subject 

20 to standards for toxic air pollutants 

21 promulgated under subparagraph (A) 

22 and paragraph (3)(B). 

23 ‘‘(iv) CREDIT PROGRAM.—The Admin24 istrator shall provide for the granting and 

25 use of credits for emissions of toxic air pol-
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1 lutants in the same manner as provided in 

2 paragraph (7). 

3 ‘‘(v) REGIONAL PROTECTION OF

4 TOXICS REDUCTION BASELINES.—

5 ‘‘(I) IN GENERAL.—Not later 

6 than 60 days after the date of enact7 ment of this subparagraph, and not 

8 later than April 1 of each calendar 

9 year that begins after that date of en10 actment, the Administrator shall pub11 lish in the Federal Register a report 

12 that specifies, with respect to the pre13 vious calendar year—

14 ‘‘(aa) the quantity of refor15 mulated gasoline produced that is 

16 in excess of the average annual 

17 quantity of reformulated gasoline 

18 produced in 2001 and 2002; and 

19 ‘‘(bb) the reduction of the 

20 average annual aggregate emis21 sions of toxic air pollutants in 

22 each PADD, based on retail sur23 vey data or data from other ap24 propriate sources. 
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1 ‘‘(II) EFFECT OF FAILURE TO

2 MAINTAIN AGGREGATE TOXICS RE3 DUCTIONS.—If, in any calendar year, 

4 the reduction of the average annual 

5 aggregate emissions of toxic air pol6 lutants in a PADD fails to meet or 

7 exceed the reduction of the average 

8 annual aggregate emissions of toxic 

9 air pollutants in the PADD in cal10 endar years 2001 and 2002, the Ad11 ministrator, not later than 90 days 

12 after the date of publication of the re13 port for the calendar year under sub14 clause (I), shall—

15 ‘‘(aa) identify, to the max16 imum extent practicable, the rea17 sons for the failure, including the 

18 sources, volumes, and character19 istics of reformulated gasoline 

20 that contributed to the failure; 

21 and 

22 ‘‘(bb) promulgate revisions 

23 to the regulations promulgated 

24 under clause (ii), to take effect 

25 not earlier than 180 days but not
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1 later than 270 days after the 

2 date of promulgation, to provide 

3 that, notwithstanding clause 

4 (iii)(II), all reformulated gasoline 

5 produced or distributed at each 

6 refinery or importer shall meet 

7 the standards applicable under 

8 clause (ii) not later than April 1 

9 of the year following the report 

10 under this subclause and for sub11 sequent years. 

12 ‘‘(vi) REGULATIONS TO CONTROL

13 HAZARDOUS AIR POLLUTANTS FROM

14 MOTOR VEHICLES AND MOTOR VEHICLE

15 FUELS.—Not later than July 1, 2006, the 

16 Administrator shall promulgate final regu17 lations to control hazardous air pollutants 

18 from motor vehicles and motor vehicle 

19 fuels, as provided for in section 80.1045 of 

20 title 40, Code of Federal Regulations (as 

21 in effect on the date of enactment of this 

22 subparagraph).’’. 

23 (c) CONSOLIDATION IN REFORMULATED GASOLINE

24 REGULATIONS.—Not later than 180 days after the date 

25 of enactment of this Act, the Administrator of the Envi-
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1 ronmental Protection Agency shall revise the reformulated 

2 gasoline regulations under subpart D of part 80 of title 

3 40, Code of Federal Regulations (or any successor regula4 tions), to consolidate the regulations applicable to VOC5 Control Regions 1 and 2 under section 80.41 of that title 

6 by eliminating the less stringent requirements applicable 

7 to gasoline designated for VOC-Control Region 2 and in8 stead applying the more stringent requirements applicable 

9 to gasoline designated for VOC-Control Region 1. 

10 (d) AUTHORITY OF ADMINISTRATOR.—Nothing in 

11 this section affects or prejudices any legal claim or action 

12 with respect to regulations promulgated by the Adminis13 trator of the Environmental Protection Agency before the 

14 date of enactment of this Act regarding—

15 (1) emissions of toxic air pollutants from motor 

16 vehicles; or 

17 (2) the adjustment of standards applicable to a 

18 specific refinery or importer made under the prior 

19 regulations. 

20 (e) DETERMINATION REGARDING A STATE PETI21 TION.—Section 211(k) of the Clean Air Act (42 U.S.C. 

22 7545(k)) is amended by inserting after paragraph (10) the 

23 following: 

24 ‘‘(11) DETERMINATION REGARDING A STATE

25 PETITION.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any 

2 other provision of this section, not later than 30 

3 days after the date of enactment of this para4 graph, the Administrator shall determine the 

5 adequacy of any petition received from a Gov6 ernor of a State to exempt gasoline sold in that 

7 State from the requirements under paragraph 

8 (2)(B). 

9 ‘‘(B) APPROVAL.—If a determination 

10 under subparagraph (A) is not made by the 

11 date that is 30 days after the date of enactment 

12 of this paragraph, the petition shall be consid13 ered to be approved.’’. 

14 SEC. 202. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS 

15 OF FUELS AND FUEL ADDITIVES. 

16 Section 211(b) of the Clean Air Act (42 U.S.C. 

17 7545(b)) is amended—

18 (1) in paragraph (2)—

19 (A) by striking ‘‘may also’’ and inserting 

20 ‘‘shall, on a regular basis,’’; and 

21 (B) by striking subparagraph (A) and in22 serting the following: 

23 ‘‘(A) to conduct tests to determine poten24 tial public health and environmental effects of 
29

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1 the fuel or additive (including carcinogenic, 

2 teratogenic, or mutagenic effects); and’’; and 

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

4 ‘‘(4) STUDY ON CERTAIN FUEL ADDITIVES AND

5 BLENDSTOCKS.—

6 ‘‘(A) IN GENERAL.—Not later than 2 years 

7 after the date of enactment of this paragraph, 

8 the Administrator shall—

9 ‘‘(i) conduct a study on the effects on 

10 public health, air quality, and water re11 sources of increased use of, and the feasi12 bility of using as substitutes for methyl 

13 tertiary butyl ether in gasoline—

14 ‘‘(I) ethyl tertiary butyl ether; 

15 ‘‘(II) tertiary amyl methyl ether; 

16 ‘‘(III) di-isopropyl ether; 

17 ‘‘(IV) tertiary butyl alcohol; 

18 ‘‘(V) other ethers and heavy alco19 hols, as determined by the Adminis20 trator; 

21 ‘‘(VI) ethanol; 

22 ‘‘(VII) iso-octane; and 

23 ‘‘(VIII) alkylates; 

24 ‘‘(ii) conduct a study on the effects on 

25 public health, air quality, and water re-
30

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1 sources of the adjustment for ethanol2 blended reformulated gasoline to the VOC 

3 performance requirements otherwise appli4 cable under sections 211(k)(1) and 

5 211(k)(3); and 

6 ‘‘(iii) submit to the Committee on En7 vironment and Public Works of the Senate 

8 and the Committee on Energy and Com9 merce of the House of Representatives a 

10 report describing the results of these stud11 ies. 

12 ‘‘(B) CONTRACTS FOR STUDY.—In car13 rying out this paragraph, the Administrator 

14 may enter into one or more contracts with non15 governmental entities including but not limited 

16 to National Energy Laboratories and institu17 tions of higher education (as defined in section 

18 101 of the Higher Education Act of 1965 (20 

19 U.S.C. 1001)).’’. 

20 SEC. 203. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

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

22 is amended by inserting after subsection (o) (as added by 

23 section 101(a)(2)) the following: 

24 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

25 AND EMISSIONS MODEL.—
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1 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

2 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

3 years after the date of enactment of this sub4 section, the Administrator shall publish for pub5 lic comment a draft analysis of the changes in 

6 emissions of air pollutants and air quality due 

7 to the use of motor vehicle fuel and fuel addi8 tives resulting from implementation of the 

9 amendments made by the Fuels Security Act of 

10 2005. 

11 ‘‘(B) FINAL ANALYSIS.—After providing a 

12 reasonable opportunity for comment, but not 

13 later than 5 years after the date of enactment 

14 of this paragraph, the Administrator shall pub15 lish the analysis in final form. 

16 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

17 this subsection, as soon as the necessary data are 

18 available, the Administrator shall develop and final19 ize an emissions model that reasonably reflects the 

20 effects of gasoline characteristics or components on 

21 emissions from vehicles in the motor vehicle fleet 

22 during calendar year 2005.’’. 
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1 SEC. 204. ADDITIONAL OPT-IN AREAS UNDER REFORMU2 LATED GASOLINE PROGRAM. 

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

4 7545(k)(6)) is amended—

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

6 Upon’’ and inserting the following:

7 ‘‘(6) OPT-IN AREAS.—

8 ‘‘(A) CLASSIFIED AREAS.—

9 ‘‘(i) IN GENERAL.—Upon’’; 

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

11 and inserting the following: 

12 ‘‘(ii) EFFECT OF INSUFFICIENT DO13 MESTIC CAPACITY TO PRODUCE REFORMU14 LATED GASOLINE.—If’’; 

15 (3) in subparagraph (A)(ii) (as redesignated by 

16 paragraph (2))—

17 (A) in the first sentence, by striking ‘‘sub18 paragraph (A)’’ and inserting ‘‘clause (i)’’; and 

19 (B) in the second sentence, by striking 

20 ‘‘this paragraph’’ and inserting ‘‘this subpara21 graph’’; and 

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

23 ‘‘(B) OZONE TRANSPORT REGION.—

24 ‘‘(i) APPLICATION OF PROHIBITION.—

25 ‘‘(I) IN GENERAL.—In addition 

26 to the provisions of subparagraph (A), 
33

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1 upon the application of the Governor 

2 of a State in the ozone transport re3 gion established by section 184(a), the 

4 Administrator, not later than 180 

5 days after the date of receipt of the 

6 application, shall apply the prohibition 

7 specified in paragraph (5) to any area 

8 in the State (other than an area clas9 sified as a marginal, moderate, seri10 ous, or severe ozone nonattainment 

11 area under subpart 2 of part D of 

12 title I) unless the Administrator deter13 mines under clause (iii) that there is 

14 insufficient capacity to supply refor15 mulated gasoline. 

16 ‘‘(II) PUBLICATION OF APPLICA17 TION.—As soon as practicable after 

18 the date of receipt of an application 

19 under subclause (I), the Adminis20 trator shall publish the application in 

21 the Federal Register. 

22 ‘‘(ii) PERIOD OF APPLICABILITY.—

23 Under clause (i), the prohibition specified 

24 in paragraph (5) shall apply in a State—
34

•S 650 IS 

1 ‘‘(I) commencing as soon as prac2 ticable but not later than 2 years 

3 after the date of approval by the Ad4 ministrator of the application of the 

5 Governor of the State; and 

6 ‘‘(II) ending not earlier than 4 

7 years after the commencement date 

8 determined under subclause (I). 

9 ‘‘(iii) EXTENSION OF COMMENCEMENT

10 DATE BASED ON INSUFFICIENT CAPAC11 ITY.—

12 ‘‘(I) IN GENERAL.—If, after re13 ceipt of an application from a Gov14 ernor of a State under clause (i), the 

15 Administrator determines, on the Ad16 ministrator’s own motion or on peti17 tion of any person, after consultation 

18 with the Secretary of Energy, that 

19 there is insufficient capacity to supply 

20 reformulated gasoline, the Adminis21 trator, by regulation—

22 ‘‘(aa) shall extend the com23 mencement date with respect to 

24 the State under clause (ii)(I) for 

25 not more than 1 year; and 
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1 ‘‘(bb) may renew the exten2 sion under item (aa) for 2 addi3 tional periods, each of which 

4 shall not exceed 1 year. 

5 ‘‘(II) DEADLINE FOR ACTION ON

6 PETITIONS.—The Administrator shall 

7 act on any petition submitted under 

8 subclause (I) not later than 180 days 

9 after the date of receipt of the peti10 tion.’’. 

11 SEC. 205. FEDERAL ENFORCEMENT OF STATE FUELS RE12 QUIREMENTS. 

13 Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

14 7545(c)(4)(C)) is amended—

15 (1) by striking ‘‘(C) A State’’ and inserting the 

16 following: 

17 ‘‘(C) AUTHORITY OF STATE TO CONTROL

18 FUELS AND FUEL ADDITIVES FOR REASONS OF

19 NECESSITY.—

20 ‘‘(i) IN GENERAL.—A State’’; and 

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

22 ‘‘(ii) ENFORCEMENT BY THE ADMIN23 ISTRATOR.—In any case in which a State 

24 prescribes and enforces a control or prohi25 bition under clause (i), the Administrator,
36

•S 650 IS 

1 at the request of the State, shall enforce 

2 the control or prohibition as if the control 

3 or prohibition had been adopted under the 

4 other provisions of this section.’’.

5 SEC. 206. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

6 STUDY. 

7 (a) STUDY.—

8 (1) IN GENERAL.—The Administrator of the 

9 Environmental Protection Agency and the Secretary 

10 of Energy shall jointly conduct a study of Federal, 

11 State, and local requirements concerning motor vehi12 cle fuels, including—

13 (A) requirements relating to reformulated 

14 gasoline, volatility (measured in Reid vapor 

15 pressure), oxygenated fuel, and diesel fuel; and 

16 (B) other requirements that vary from 

17 State to State, region to region, or locality to 

18 locality. 

19 (2) REQUIRED ELEMENTS.—The study shall as20 sess—

21 (A) the effect of the variety of require22 ments described in paragraph (1) on the supply, 

23 quality, and price of motor vehicle fuels avail24 able to the consumer; 
37

•S 650 IS 

1 (B) the effect of the requirements de2 scribed in paragraph (1) on achievement of—

3 (i) national, regional, and local air 

4 quality standards and goals; and 

5 (ii) related environmental and public 

6 health protection standards and goals; 

7 (C) the effect of Federal, State, and local 

8 motor vehicle fuel regulations, including mul9 tiple motor vehicle fuel requirements, on—

10 (i) domestic refineries; 

11 (ii) the fuel distribution system; and 

12 (iii) industry investment in new capac13 ity; 

14 (D) the effect of the requirements de15 scribed in paragraph (1) on emissions from ve16 hicles, refineries, and fuel handling facilities; 

17 (E) the feasibility of developing national or 

18 regional motor vehicle fuel slates for the 48 

19 contiguous States that, while protecting and im20 proving air quality at the national, regional, 

21 and local levels, could—

22 (i) enhance flexibility in the fuel dis23 tribution infrastructure and improve fuel 

24 fungibility; 
38

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1 (ii) reduce price volatility and costs to 

2 consumers and producers; 

3 (iii) provide increased liquidity to the 

4 gasoline market; and 

5 (iv) enhance fuel quality, consistency, 

6 and supply; and 

7 (F) the feasibility of providing incentives, 

8 and the need for the development of national 

9 standards necessary, to promote cleaner burn10 ing motor vehicle fuel. 

11 (b) REPORT.—

12 (1) IN GENERAL.—Not later than June 1, 

13 2006, the Administrator of the Environmental Pro14 tection Agency and the Secretary of Energy shall 

15 submit to Congress a report on the results of the 

16 study conducted under subsection (a). 

17 (2) RECOMMENDATIONS.—

18 (A) IN GENERAL.—The report shall con19 tain recommendations for legislative and admin20 istrative actions that may be taken—

21 (i) to improve air quality; 

22 (ii) to reduce costs to consumers and 

23 producers; and 

24 (iii) to increase supply liquidity. 
39

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1 (B) REQUIRED CONSIDERATIONS.—The 

2 recommendations under subparagraph (A) shall 

3 take into account the need to provide advance 

4 notice of required modifications to refinery and 

5 fuel distribution systems in order to ensure an 

6 adequate supply of motor vehicle fuel in all 

7 States. 

8 (3) CONSULTATION.—In developing the report, 

9 the Administrator of the Environmental Protection 

10 Agency and the Secretary of Energy shall consult 

11 with—

12 (A) the Governors of the States; 

13 (B) automobile manufacturers; 

14 (C) motor vehicle fuel producers and dis15 tributors; and 

16 (D) the public. 

17 SEC. 207. REVIEW OF FEDERAL PROCUREMENT INITIA18 TIVES RELATING TO USE OF RECYCLED 

19 PRODUCTS AND FLEET AND TRANSPOR20 TATION EFFICIENCY. 

21 Not later than 180 days after the date of enactment 

22 of this Act, the Administrator of General Services shall 

23 submit to Congress a report that details efforts by each 

24 Federal agency to implement the procurement policies 

25 specified in Executive Order No. 13101 (63 Fed. Reg. 
40

•S 650 IS 

1 49643; relating to governmental use of recycled products) 

2 and Executive Order No. 13149 (65 Fed. Reg. 24607; re3 lating to Federal fleet and transportation efficiency). 

4 SEC. 208. REPORT ON RENEWABLE MOTOR FUEL. 

5 Not later than January 1, 2007, the Secretary of En6 ergy and the Secretary of Agriculture shall jointly prepare 

7 and submit to Congress a report containing recommenda8 tions for achieving, by January 1, 2025, at least 25 per9 cent renewable fuel content (calculated on an average an10 nual basis) for all gasoline sold or introduced into com11 merce in the United States.

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