II 

109TH CONGRESS 

1ST SESSION S. 606 

To amend the Clean Air Act to eliminate methyl tertiary butyl ether from 

the United States fuel supply, to increase production and use of renewable fuel, and to increase the Nation’s energy independence, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 11, 2005 

Mr. THUNE (for himself, Mr. INHOFE, Mr. VOINOVICH, 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 eliminate methyl tertiary 

butyl ether from the United States fuel supply, to increase production and use of renewable fuel, and to 

increase the Nation’s energy independence, 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 ‘‘Reliable Fuels Act’’. 

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 gasoline. 

Sec. 102. Renewable fuel. 

Sec. 103. Survey of renewable fuels consumption. 

TITLE II—FEDERAL REFORMULATED FUELS 

Sec. 201. Short title. 

Sec. 202. Leaking underground storage tanks. 

Sec. 203. Restrictions on the use of MTBE. 

Sec. 204. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 205. Public health and environmental impacts of fuels and fuel additives. 

Sec. 206. Analyses of motor vehicle fuel changes. 

Sec. 207. Additional opt-in areas under reformulated gasoline program. 

Sec. 208. Federal enforcement of State fuels requirements. 

Sec. 209. Fuel system requirements harmonization study. 

1 TITLE I—GENERAL PROVISIONS 

2 SEC. 101. RENEWABLE CONTENT OF GASOLINE. 

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 (r); and 

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

9 ‘‘(o) RENEWABLE FUEL PROGRAM.— 

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

11 ‘‘(A) CELLULOSIC BIOMASS ETHANOL.— 

12 The term ‘cellulosic biomass ethanol’ means 

13 ethanol derived from any lignocellulosic or 

14 hemicellulosic matter that is available on a re15 newable or recurring basis, including— 

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

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

2 ‘‘(iv) grasses; 

3 ‘‘(v) agricultural residues; 

4 ‘‘(vi) fibers; 

5 ‘‘(vii) animal wastes and other waste 

6 materials; and 

7 ‘‘(viii) municipal solid waste. 

8 ‘‘(B) RENEWABLE FUEL.— 

9 ‘‘(i) IN GENERAL.—The term ‘renew10 able fuel’ means motor vehicle fuel that— 

11 ‘‘(I)(aa) is produced from grain, 

12 starch, oilseeds, or other biomass; or 

13 ‘‘(bb) is natural gas produced 

14 from a biogas source, including a 

15 landfill, sewage waste treatment plant, 

16 feedlot, or other place where decaying 

17 organic material is found; and 

18 ‘‘(II) is used to replace or reduce 

19 the quantity of fossil fuel present in a 

20 fuel mixture used to operate a motor 

21 vehicle. 

22 ‘‘(ii) INCLUSION.—The term ‘renew23 able fuel’ includes— 

24 ‘‘(I) cellulosic biomass ethanol; 

25 and 
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1 ‘‘(II) biodiesel (as defined in sec2 tion 312(f) of the Energy Policy Act 

3 of 1992 (42 U.S.C. 13220(f))). 

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

5 refinery’ means a refinery for which the average 

6 aggregate daily crude oil throughput for a cal7 endar year (as determined by dividing the ag8 gregate throughput for the calendar year by the 

9 number of days in the calendar year) does not 

10 exceed 75,000 barrels. 

11 ‘‘(2) RENEWABLE FUEL PROGRAM.— 

12 ‘‘(A) REGULATIONS.— 

13 ‘‘(i) IN GENERAL.—Not later than 1 

14 year after the date of enactment of this 

15 paragraph, the Administrator shall promul16 gate regulations to ensure that gasoline 

17 sold or introduced into commerce in the 

18 United States (except in Alaska and Ha19 waii), on an annual average basis, contains 

20 the applicable volume of renewable fuel de21 termined in accordance with subparagraph 

22 (B). 

23 ‘‘(ii) PROVISIONS OF REGULATIONS.— 

24 Regardless of the date of promulgation, 
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1 the regulations promulgated under clause 

2 (i)— 

3 ‘‘(I) shall contain compliance pro4 visions applicable to refineries, blend5 ers, distributors, and importers, as 

6 appropriate, to ensure that the re7 quirements of this paragraph are met; 

8 but 

9 ‘‘(II) shall not— 

10 ‘‘(aa) restrict cases in which 

11 renewable fuel may be used; or 

12 ‘‘(bb) impose any per-gallon 

13 obligation for the use of renew14 able fuel. 

15 ‘‘(iii) REQUIREMENT IN CASE OF

16 FAILURE TO PROMULGATE REGULA17 TIONS.—If the Administrator does not pro18 mulgate regulations under clause (i), the 

19 percentage of renewable fuel in gasoline 

20 sold or dispensed to consumers in the 

21 United States, on a volume basis, shall be 

22 1.8 percent for calendar year 2006. 

23 ‘‘(B) APPLICABLE VOLUME.— 

24 ‘‘(i) CALENDAR YEARS 2006 THROUGH

25 2012.—For the purpose of subparagraph 
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1 (A), the applicable volume for any of cal2 endar years 2006 through 2012 shall be 

3 determined in accordance with the fol4 lowing table: 

Calendar year: Applicable volume 

of renewable fuel 

(in billions of gallons): 

2006 ...................................................................... 3.8 

2007 ...................................................................... 4.1 

2008 ...................................................................... 4.5 

2009 ...................................................................... 4.9 

2010 ...................................................................... 5.3 

2011 ...................................................................... 5.7 

2012 ...................................................................... 6.0 

5 ‘‘(ii) CALENDAR YEAR 2013 AND

6 THEREAFTER.—For the purpose of sub7 paragraph (A), the applicable volume for 

8 calendar year 2013 and each calendar year 

9 thereafter shall be equal to the product ob10 tained by multiplying— 

11 ‘‘(I) the number of gallons of 

12 gasoline that the Administrator esti13 mates will be sold or introduced into 

14 commerce in the calendar year; and 

15 ‘‘(II) the ratio that— 

16 ‘‘(aa) 5,000,000,000 gallons 

17 of renewable fuel; bears to 

18 ‘‘(bb) the number of gallons 

19 of gasoline sold or introduced 
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1 into commerce in calendar year 

2 2012. 

3 ‘‘(3) APPLICABLE PERCENTAGES.— 

4 ‘‘(A) PROVISION OF ESTIMATE OF VOL5 UMES OF GASOLINE SALES.—Not later than Oc6 tober 31 of each of calendar years 2005 

7 through 2011, the Administrator of the Energy 

8 Information Administration shall provide to the 

9 Administrator of the Environmental Protection 

10 Agency an estimate of the volumes of gasoline 

11 sold or introduced into commerce in the United 

12 States during the following calendar year. 

13 ‘‘(B) DETERMINATION OF APPLICABLE

14 PERCENTAGES.— 

15 ‘‘(i) IN GENERAL.—Not later than 

16 November 30 of each of calendar years 

17 2005 through 2011, based on the estimate 

18 provided under subparagraph (A), the Ad19 ministrator of the Environmental Protec20 tion Agency shall determine and publish in 

21 the Federal Register, with respect to the 

22 following calendar year, the renewable fuel 

23 obligation that ensures that the require24 ments of paragraph (2) are met. 
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1 ‘‘(ii) REQUIRED ELEMENTS.—The re2 newable fuel obligation determined for a 

3 calendar year under clause (i) shall— 

4 ‘‘(I) be applicable to refineries, 

5 blenders, and importers, as appro6 priate; 

7 ‘‘(II) be expressed in terms of a 

8 volume percentage of gasoline; and 

9 ‘‘(III) subject to subparagraph 

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

11 percentage that applies to all cat12 egories of persons specified in sub13 clause (I). 

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

15 applicable percentage for a calendar year, the 

16 Administrator shall make adjustments— 

17 ‘‘(i) to prevent the imposition of re18 dundant obligations on any person speci19 fied in subparagraph (B)(ii)(I); and 

20 ‘‘(ii) to account for the use of renew21 able fuel during the previous calendar year 

22 by small refineries that are exempt under 

23 paragraph (9). 

24 ‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the 

25 purpose of paragraph (2), 1 gallon of cellulosic bio-
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1 mass ethanol shall be considered to be the equivalent 

2 of 1.5 gallons of renewable fuel. 

3 ‘‘(5) CREDIT PROGRAM.— 

4 ‘‘(A) IN GENERAL.—The regulations pro5 mulgated under paragraph (2)(A) shall pro6 vide— 

7 ‘‘(i) for the generation of an appro8 priate amount of credits by any person 

9 that refines, blends, or imports gasoline 

10 that contains a quantity of renewable fuel 

11 that is greater than the quantity required 

12 under paragraph (2); 

13 ‘‘(ii) for the generation of an appro14 priate amount of credits for biodiesel; and 

15 ‘‘(iii) for the generation of credits by 

16 small refineries in accordance with para17 graph (9)(C). 

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

19 generates credits under subparagraph (A) may 

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

21 the credits to another person, for the purpose 

22 of complying with paragraph (2). 

23 ‘‘(C) DURATION OF CREDITS.—A credit 

24 generated under this paragraph shall be valid to 

25 show compliance— 
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1 ‘‘(i) subject to clause (ii), for the cal2 endar year in which the credit was gen3 erated or the following calendar year; or 

4 ‘‘(ii) if the Administrator promulgates 

5 regulations under paragraph (6), for the 

6 calendar year in which the credit was gen7 erated or any of the following 2 calendar 

8 years. 

9 ‘‘(D) INABILITY TO GENERATE OR PUR10 CHASE SUFFICIENT CREDITS.—The regulations 

11 promulgated under paragraph (2)(A) shall in12 clude provisions allowing any person that is un13 able to generate or purchase sufficient credits 

14 to meet the requirements of paragraph (2) to 

15 carry forward a renewable fuel deficit on condi16 tion that the person, in the calendar year fol17 lowing the year in which the renewable fuel def18 icit is created— 

19 ‘‘(i) achieves compliance with the re20 newable fuel requirement under paragraph 

21 (2); and 

22 ‘‘(ii) generates or purchases additional 

23 renewable fuel credits to offset the renew24 able fuel deficit of the previous year. 
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1 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

2 FUEL USE.— 

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

4 2006 through 2012, the Administrator of the 

5 Energy Information Administration shall con6 duct a study of renewable fuel blending to de7 termine whether there are excessive seasonal 

8 variations in the use of renewable fuel. 

9 ‘‘(B) REGULATION OF EXCESSIVE SEA10 SONAL VARIATIONS.—If, for any calendar year, 

11 the Administrator of the Energy Information 

12 Administration, based on the study under sub13 paragraph (A), makes the determinations speci14 fied in subparagraph (C), the Administrator of 

15 the Environmental Protection Agency shall pro16 mulgate regulations to ensure that 35 percent 

17 or more of the quantity of renewable fuel nec18 essary to meet the requirements of paragraph 

19 (2) is used during each of the 2 periods speci20 fied in subparagraph (D) of each subsequent 

21 calendar year. 

22 ‘‘(C) DETERMINATIONS.—The determina23 tions referred to in subparagraph (B) are 

24 that— 
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1 ‘‘(i) less than 35 percent of the quan2 tity of renewable fuel necessary to meet the 

3 requirements of paragraph (2) has been 

4 used during 1 of the 2 periods specified in 

5 subparagraph (D) of the calendar year; 

6 and 

7 ‘‘(ii) a pattern of excessive seasonal 

8 variation described in clause (i) will con9 tinue in subsequent calendar years. 

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

11 in this paragraph are— 

12 ‘‘(i) April through September; and 

13 ‘‘(ii) January through March and Oc14 tober through December. 

15 ‘‘(E) EXCLUSION.—Renewable fuel blended 

16 or consumed in calendar year 2006 in a State 

17 that has received a waiver under section 209(b) 

18 shall not be included in the study under sub19 paragraph (A). 

20 ‘‘(7) WAIVERS.— 

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

22 consultation with the Secretary of Agriculture 

23 and the Secretary of Energy, may waive the re24 quirements of paragraph (2) in whole or in part 

25 on petition by 1 or more States by reducing the 
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1 national quantity of renewable fuel required 

2 under paragraph (2)— 

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

4 Administrator, after public notice and op5 portunity for comment, that implementa6 tion of the requirement would severely 

7 harm the economy or environment of a 

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

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

10 Administrator, after public notice and op11 portunity for comment, that there is an in12 adequate domestic supply or distribution 

13 capacity to meet the requirement. 

14 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad15 ministrator, in consultation with the Secretary 

16 of Agriculture and the Secretary of Energy, 

17 shall approve or disapprove a State petition for 

18 a waiver of the requirements of paragraph (2) 

19 within 90 days after the date on which the peti20 tion is received by the Administrator. 

21 ‘‘(C) TERMINATION OF WAIVERS.—A waiv22 er granted under subparagraph (A) shall termi23 nate after 1 year, but may be renewed by the 

24 Administrator after consultation with the Sec-
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1 retary of Agriculture and the Secretary of En2 ergy. 

3 ‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF

4 PROGRAM.— 

5 ‘‘(A) IN GENERAL.—Not later than 180 

6 days after the date of enactment of this para7 graph, the Secretary of Energy shall conduct 

8 for the Administrator a study assessing whether 

9 the renewable fuel requirement under para10 graph (2) will likely result in significant adverse 

11 impacts on consumers in 2006, on a national, 

12 regional, or State basis. 

13 ‘‘(B) REQUIRED EVALUATIONS.—The 

14 study shall evaluate renewable fuel— 

15 ‘‘(i) supplies and prices; 

16 ‘‘(ii) blendstock supplies; and 

17 ‘‘(iii) supply and distribution system 

18 capabilities. 

19 ‘‘(C) RECOMMENDATIONS BY THE SEC20 RETARY.—Based on the results of the study, 

21 the Secretary of Energy shall make specific rec22 ommendations to the Administrator concerning 

23 waiver of the requirements of paragraph (2), in 

24 whole or in part, to prevent any adverse im25 pacts described in subparagraph (A). 
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1 ‘‘(D) WAIVER.— 

2 ‘‘(i) IN GENERAL.—Not later than 

3 270 days after the date of enactment of 

4 this paragraph, the Administrator shall, if 

5 and to the extent recommended by the Sec6 retary of Energy under subparagraph (C), 

7 waive, in whole or in part, the renewable 

8 fuel requirement under paragraph (2) by 

9 reducing the national quantity of renew10 able fuel required under paragraph (2) in 

11 calendar year 2006. 

12 ‘‘(ii) NO EFFECT ON WAIVER AUTHOR13 ITY.—Clause (i) does not limit the author14 ity of the Administrator to waive the re15 quirements of paragraph (2) in whole, or 

16 in part, under paragraph (7). 

17 ‘‘(9) SMALL REFINERIES.— 

18 ‘‘(A) TEMPORARY EXEMPTION.— 

19 ‘‘(i) IN GENERAL.—The requirements 

20 of paragraph (2) shall not apply to small 

21 refineries until calendar year 2011. 

22 ‘‘(ii) EXTENSION OF EXEMPTION.— 

23 ‘‘(I) STUDY BY SECRETARY OF

24 ENERGY.—Not later than December 

25 31, 2008, the Secretary of Energy 
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1 shall conduct for the Administrator a 

2 study to determine whether compli3 ance with the requirements of para4 graph (2) would impose a dispropor5 tionate economic hardship on small 

6 refineries. 

7 ‘‘(II) EXTENSION OF EXEMP8 TION.—In the case of a small refinery 

9 that the Secretary of Energy deter10 mines under subclause (I) would be 

11 subject to a disproportionate economic 

12 hardship if required to comply with 

13 paragraph (2), the Administrator 

14 shall extend the exemption under 

15 clause (i) for the small refinery for a 

16 period of not less than 2 additional 

17 years. 

18 ‘‘(B) PETITIONS BASED ON DISPROPOR19 TIONATE 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 under subparagraph (A) for the 

24 reason of disproportionate economic hard25 ship. 
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1 ‘‘(ii) EVALUATION OF PETITIONS.—In 

2 evaluating a petition under clause (i), the 

3 Administrator, in consultation with the 

4 Secretary of Energy, shall consider the 

5 findings of the study under subparagraph 

6 (A)(ii) and other economic factors. 

7 ‘‘(iii) DEADLINE FOR ACTION ON PE8 TITIONS.—The Administrator shall act on 

9 any petition submitted by a small refinery 

10 for a hardship exemption not later than 90 

11 days after the date of receipt of the peti12 tion. 

13 ‘‘(C) CREDIT PROGRAM.—If a small refin14 ery notifies the Administrator that the small re15 finery waives the exemption under subpara16 graph (A), the regulations promulgated under 

17 paragraph (2)(A) shall provide for the genera18 tion of credits by the small refinery under para19 graph (5) beginning in the calendar year fol20 lowing the date of notification. 

21 ‘‘(D) OPT-IN FOR SMALL REFINERIES.—A 

22 small refinery shall be subject to the require23 ments of paragraph (2) if the small refinery no24 tifies the Administrator that the small refinery 

25 waives the exemption under subparagraph (A). 
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1 ‘‘(10) ETHANOL MARKET CONCENTRATION

2 ANALYSIS.— 

3 ‘‘(A) ANALYSIS.— 

4 ‘‘(i) IN GENERAL.—Not later than 

5 180 days after the date of enactment of 

6 this paragraph, and annually thereafter, 

7 the Federal Trade Commission shall per8 form a market concentration analysis of 

9 the ethanol production industry using the 

10 Herfindahl-Hirschman Index to determine 

11 whether there is sufficient competition 

12 among industry participants to avoid price13 setting and other anticompetitive behavior. 

14 ‘‘(ii) SCORING.—For the purpose of 

15 scoring under clause (i) using the 

16 Herfindahl-Hirschman Index, all mar17 keting arrangements among industry par18 ticipants shall be considered. 

19 ‘‘(B) REPORT.—Not later than December 

20 1, 2005, and annually thereafter, the Federal 

21 Trade Commission shall submit to Congress 

22 and the Administrator a report on the results 

23 of the market concentration analysis performed 

24 under subparagraph (A)(i). 

25 ‘‘(p) RENEWABLE FUEL SAFE HARBOR.— 
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1 ‘‘(1) IN GENERAL.— 

2 ‘‘(A) SAFE HARBOR.—Notwithstanding 

3 any other provision of Federal or State law, no 

4 renewable fuel (as defined in subsection (o)(1)) 

5 used or intended to be used as a motor vehicle 

6 fuel, nor any motor vehicle fuel containing re7 newable fuel, shall be deemed to be defective in 

8 design or manufacture by reason of the fact 

9 that the fuel is, or contains, renewable fuel, if— 

10 ‘‘(i) the fuel does not violate a control 

11 or prohibition imposed by the Adminis12 trator under this section; and 

13 ‘‘(ii) the manufacturer of the fuel is in 

14 compliance with all requests for informa15 tion under subsection (b). 

16 ‘‘(B) SAFE HARBOR NOT APPLICABLE.—In 

17 any case in which subparagraph (A) does not 

18 apply to a quantity of fuel, the existence of a 

19 design defect or manufacturing defect with re20 spect to the fuel shall be determined under oth21 erwise applicable law. 

22 ‘‘(2) EXCEPTION.—This subsection does not 

23 apply to ethers. 
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1 ‘‘(3) APPLICABILITY.—This subsection applies 

2 with respect to all claims filed on or after the date 

3 of enactment of this subsection.’’. 

4 (b) PENALTIES AND ENFORCEMENT.—Section 

5 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

6 amended— 

7 (1) in paragraph (1)— 

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

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

10 or (o)’’; and 

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

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

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

14 striking ‘‘and (n)’’ each place it appears and insert15 ing ‘‘(n), and (o)’’. 

16 (c) EXCLUSION FROM ETHANOL WAIVER.—Section 

17 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is 

18 amended— 

19 (1) by redesignating paragraph (5) as para20 graph (6); and 

21 (2) by inserting after paragraph (4) the fol22 lowing: 

23 ‘‘(5) EXCLUSION FROM ETHANOL WAIVER.— 

24 ‘‘(A) PROMULGATION OF REGULATIONS.— 

25 Upon notification, accompanied by supporting 
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1 documentation, from the Governor of a State 

2 that the Reid vapor pressure limitation estab3 lished by paragraph (4) will increase emissions 

4 that contribute to air pollution in any area in 

5 the State, the Administrator shall, by regula6 tion, apply, in lieu of the Reid vapor pressure 

7 limitation established by paragraph (4), the 

8 Reid vapor pressure limitation established by 

9 paragraph (1) to all fuel blends containing gas10 oline and 10 percent denatured anhydrous eth11 anol that are sold, offered for sale, dispensed, 

12 supplied, offered for supply, transported, or in13 troduced into commerce in the area during the 

14 high ozone season. 

15 ‘‘(B) DEADLINE FOR PROMULGATION.— 

16 The Administrator shall promulgate regulations 

17 under subparagraph (A) not later than 90 days 

18 after the date of receipt of a notification from 

19 a Governor under that subparagraph. 

20 ‘‘(C) EFFECTIVE DATE.— 

21 ‘‘(i) IN GENERAL.—With respect to an 

22 area in a State for which the Governor 

23 submits a notification under subparagraph 

24 (A), the regulations under that subpara25 graph shall take effect on the later of— 
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1 ‘‘(I) the first day of the first high 

2 ozone season for the area that begins 

3 after the date of receipt of the notifi4 cation; or 

5 ‘‘(II) 1 year after the date of re6 ceipt of the notification. 

7 ‘‘(ii) EXTENSION OF EFFECTIVE DATE

8 BASED ON DETERMINATION OF INSUFFI9 CIENT SUPPLY.— 

10 ‘‘(I) IN GENERAL.—If, after re11 ceipt of a notification with respect to 

12 an area from a Governor of a State 

13 under subparagraph (A), the Adminis14 trator determines, on the Administra15 tor’s own motion or on petition of any 

16 person and after consultation with the 

17 Secretary of Energy, that the promul18 gation of regulations described in sub19 paragraph (A) would result in an in20 sufficient supply of gasoline in the 

21 State, the Administrator, by regula22 tion— 

23 ‘‘(aa) shall extend the effec24 tive date of the regulations under 
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1 clause (i) with respect to the area 

2 for not more than 1 year; and 

3 ‘‘(bb) may renew the exten4 sion under item (aa) for 2 addi5 tional periods, each of which 

6 shall not exceed 1 year. 

7 ‘‘(II) DEADLINE FOR ACTION ON

8 PETITIONS.—The Administrator shall 

9 act on any petition submitted under 

10 subclause (I) not later than 180 days 

11 after the date of receipt of the peti12 tion.’’. 

13 SEC. 102. RENEWABLE FUEL. 

14 (a) IN GENERAL.—The Clean Air Act is amended by 

15 inserting after section 211 (42 U.S.C. 7411) the following: 

16 ‘‘SEC. 212. RENEWABLE FUEL. 

17 ‘‘(a) DEFINITIONS.—In this section: 

18 ‘‘(1) MUNICIPAL SOLID WASTE.—The term 

19 ‘municipal solid waste’ has the meaning given the 

20 term ‘solid waste’ in section 1004 of the Solid Waste 

21 Disposal Act (42 U.S.C. 6903). 

22 ‘‘(2) RFG STATE.—The term ‘RFG State’ 

23 means a State in which is located 1 or more covered 

24 areas (as defined in section 211(k)(10)(D)). 
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1 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

2 the Secretary of Energy. 

3 ‘‘(b) SURVEY OF RENEWABLE FUEL MARKET.— 

4 ‘‘(1) SURVEY AND REPORT.—Not later than 

5 December 1, 2006, and annually thereafter, the Ad6 ministrator shall— 

7 ‘‘(A) conduct, with respect to each conven8 tional gasoline use area and each reformulated 

9 gasoline use area in each State, a survey to de10 termine the market shares of— 

11 ‘‘(i) conventional gasoline containing 

12 ethanol; 

13 ‘‘(ii) reformulated gasoline containing 

14 ethanol; 

15 ‘‘(iii) conventional gasoline containing 

16 renewable fuel; and 

17 ‘‘(iv) reformulated gasoline containing 

18 renewable fuel; and 

19 ‘‘(B) submit to Congress, and make pub20 licly available, a report on the results of the 

21 survey under subparagraph (A). 

22 ‘‘(2) RECORDKEEPING AND REPORTING RE23 QUIREMENTS.— 

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

25 may require any refiner, blender, or importer to 
25 

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1 keep such records and make such reports as are 

2 necessary to ensure that the survey conducted 

3 under paragraph (1) is accurate. 

4 ‘‘(B) RELIANCE ON EXISTING REQUIRE5 MENTS.—To avoid duplicative requirements, in 

6 carrying out subparagraph (A), the Adminis7 trator shall rely, to the maximum extent prac8 ticable, on reporting and recordkeeping require9 ments in effect on the date of enactment of this 

10 section. 

11 ‘‘(3) CONFIDENTIALITY.—Activities carried out 

12 under this subsection shall be conducted in a man13 ner designed to protect confidentiality of individual 

14 responses. 

15 ‘‘(c) COMMERCIAL BYPRODUCTS FROM MUNICIPAL

16 SOLID WASTE LOAN GUARANTEE PROGRAM.— 

17 ‘‘(1) IN GENERAL.—In addition to amounts ap18 propriated or otherwise made available by this Act 

19 or any other Act, $llll shall be provided until 

20 expended for the cost (as defined in the Federal 

21 Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) 

22 of loan guarantees issued under section 19 of the 

23 Federal Nonnuclear Energy Research and Develop24 ment Act of 1974 (42 U.S.C. 5919) to carry out 

25 celluosic biomass commercial demonstration projects. 
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1 ‘‘(2) DEMONSTRATION PROJECTS.— 

2 ‘‘(A) IN GENERAL.—The Secretary shall 

3 issue loan guarantees under this section to 

4 carry out not more than 3 projects to commer5 cially demonstrate the feasibility and viability of 

6 converting celluosic biomass derived from agri7 cultural residue such as corn stover or straw 

8 (including at least 1 project that uses cereal 

9 straw as a feedstock or municipal solid waste) 

10 into ethanol. 

11 ‘‘(B) DESIGN CAPACITY.—Each project 

12 shall have a design capacity to produce at least 

13 30,000,000 gallons of cellulose ethanol each 

14 year. 

15 ‘‘(3) APPLICANT ASSURANCES.—An applicant 

16 for a loan guarantee under this section shall provide 

17 assurances, satisfactory to the Secretary, that— 

18 ‘‘(A) the project design has been validated 

19 through the operation of a continuous process 

20 facility with a cumulative output of at least 

21 50,000 gallons of ethanol; 

22 ‘‘(B) the project has been subject to a full 

23 technical review; 

24 ‘‘(C) the project is covered by adequate 

25 project performance guarantees; 
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1 ‘‘(D) the project, with the loan guarantee, 

2 is economically viable; and 

3 ‘‘(E) there is a reasonable assurance of re4 payment of the guaranteed loan. 

5 ‘‘(4) LIMITATIONS.— 

6 ‘‘(A) MAXIMUM GUARANTEE.—Except as 

7 provided in subparagraph (B), notwithstanding 

8 section 19(c)(2)(A) of the Federal Nonnuclear 

9 Energy Research and Development Act of 1974 

10 (42 U.S.C. 5919(c)(2)(A)), a loan guarantee 

11 under this section may be issued for up to 80 

12 percent of the estimated cost of a project, but 

13 may not exceed $250,000,000 for a project. 

14 ‘‘(B) ADDITIONAL GUARANTEES.— 

15 ‘‘(i) IN GENERAL.—The Secretary 

16 may issue additional loan guarantees for a 

17 project to cover up to 80 percent of the ex18 cess of actual project cost over estimated 

19 project cost but not to exceed 15 percent 

20 of the amount of the original guarantee. 

21 ‘‘(ii) PRINCIPAL AND INTEREST.— 

22 Subject to subparagraph (A), the Secretary 

23 shall guarantee 100 percent of the prin24 cipal and interest of a loan made under 

25 subparagraph (A). 
28 

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1 ‘‘(5) EQUITY CONTRIBUTIONS.—To be eligible 

2 for a loan guarantee under this section, an applicant 

3 for the loan guarantee shall have binding commit4 ments from equity investors to provide an initial eq5 uity contribution of at least 20 percent of the total 

6 project cost. 

7 ‘‘(6) EFFECT OF OTHER LAWS.—The following 

8 provisions are inapplicable to a loan guarantee made 

9 under this section: 

10 ‘‘(A) Subsections (m) and (p) of section 19 

11 of the Federal Nonnuclear Energy Research 

12 and Development Act of 1974 (42 U.S.C. 

13 5919). 

14 ‘‘(B) The first, third, and fourth sentences 

15 of section 19(g)(4) of that Act. 

16 ‘‘(7) INSUFFICIENT AMOUNTS.—If the amount 

17 made available to carry out this section is insuffi18 cient to allow the Secretary to make loan guarantees 

19 for 3 projects described in subsection (b), the Sec20 retary shall issue loan guarantees for 1 or more 

21 qualifying projects under this section in the order in 

22 which the applications for the projects are received 

23 by the Secretary. 

24 ‘‘(8) APPROVAL.—An application for a loan 

25 guarantee under this section shall be approved or 
29 

•S 606 IS

1 disapproved by the Secretary not later than 90 days 

2 after the application is received by the Secretary. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS FOR RE4 SOURCE CENTER.—There is authorized to be appro5 priated, for a resource center to further develop bioconver6 sion technology using low-cost biomass for the production 

7 of ethanol at the Center for Biomass-Based Energy at the 

8 University of Mississippi and the University of Oklahoma, 

9 $4,000,000 for each of fiscal years 2004 through 2006. 

10 ‘‘(e) RENEWABLE FUEL PRODUCTION RESEARCH

11 AND DEVELOPMENT GRANTS.— 

12 ‘‘(1) IN GENERAL.—The Administrator shall 

13 provide grants for the research into, and develop14 ment and implementation of, renewable fuel produc15 tion technologies in RFG States with low rates of 

16 ethanol production, including low rates of production 

17 of cellulosic biomass ethanol. 

18 ‘‘(2) ELIGIBILITY.— 

19 ‘‘(A) IN GENERAL.—The entities eligible to 

20 receive a grant under this subsection are aca21 demic institutions in RFG States, and consortia 

22 made up of combinations of academic institu23 tions, industry, State government agencies, or 

24 local government agencies in RFG States, that 
30 

•S 606 IS

1 have proven experience and capabilities with 

2 relevant technologies. 

3 ‘‘(B) APPLICATION.—To be eligible to re4 ceive a grant under this subsection, an eligible 

5 entity shall submit to the Administrator an ap6 plication in such manner and form, and accom7 panied by such information, as the Adminis8 trator may specify. 

9 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

10 There is authorized to be appropriated to carry out 

11 this subsection $25,000,000 for each of fiscal years 

12 2006 through 2010. 

13 ‘‘(f) CELLULOSIC BIOMASS ETHANOL CONVERSION

14 ASSISTANCE.— 

15 ‘‘(1) IN GENERAL.—The Secretary may provide 

16 grants to merchant producers of cellulosic biomass 

17 ethanol in the United States to assist the producers 

18 in building eligible production facilities described in 

19 paragraph (2) for the production of cellulosic bio20 mass ethanol. 

21 ‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A 

22 production facility shall be eligible to receive a grant 

23 under this subsection if the production facility— 

24 ‘‘(A) is located in the United States; and 
31 

•S 606 IS

1 ‘‘(B) uses cellulosic biomass feedstocks de2 rived from agricultural residues or municipal 

3 solid waste. 

4 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

5 There is authorized to be appropriated to carry out 

6 this subsection— 

7 ‘‘(A) $250,000,000 for fiscal year 2005; 

8 and 

9 ‘‘(B) $400,000,000 for fiscal year 2006.’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents for the Clean Air Act (42 U.S.C. 7401 prec.) is 

12 amended by inserting after the item relating to section 

13 211 the following: 

‘‘Sec. 212. Renewable fuels’’. 

14 SEC. 103. SURVEY OF RENEWABLE FUELS CONSUMPTION. 

15 Section 205 of the Department of Energy Organiza16 tion Act (42 U.S.C. 7135) is amended by adding at the 

17 end the following: 

18 ‘‘(m) SURVEY OF RENEWABLE FUELS CONSUMP19 TION.— 

20 ‘‘(1) IN GENERAL.—In order to improve the 

21 ability to evaluate the effectiveness of the Nation’s 

22 renewable fuels mandate, the Administrator shall 

23 conduct and publish the results of a survey of renew24 able fuels consumption in the motor vehicle fuels 

25 market in the United States monthly, and in a man-
32 

•S 606 IS

1 ner designed to protect the confidentiality of indi2 vidual responses. 

3 ‘‘(2) ELEMENTS OF SURVEY.—In conducting 

4 the survey, the Administrator shall collect informa5 tion retrospectively to 1998, on a national basis and 

6 a regional basis, including— 

7 ‘‘(A) the quantity of renewable fuels pro8 duced; 

9 ‘‘(B) the cost of production; 

10 ‘‘(C) the cost of blending and marketing; 

11 ‘‘(D) the quantity of renewable fuels blend12 ed; 

13 ‘‘(E) the quantity of renewable fuels im14 ported; and 

15 ‘‘(F) market price data.’’. 

16 TITLE II—FEDERAL 

17 REFORMULATED FUELS 

18 SEC. 201. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘Federal Reformu20 lated Fuels Act of 2005’’. 

21 SEC. 202. LEAKING UNDERGROUND STORAGE TANKS. 

22 (a) USE OF LUST FUNDS FOR REMEDIATION OF

23 CONTAMINATION FROM ETHER FUEL ADDITIVES.—Sec24 tion 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 

25 6991b(h)) is amended— 
33 

•S 606 IS

1 (1) in paragraph (7)(A)— 

2 (A) by striking ‘‘paragraphs (1) and (2) of 

3 this subsection’’ and inserting ‘‘paragraphs (1), 

4 (2), and (12)’’; and 

5 (B) by inserting ‘‘and section 9010’’ before 

6 ‘‘if’’; and 

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

8 ‘‘(12) REMEDIATION OF CONTAMINATION FROM

9 ETHER FUEL ADDITIVES.— 

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

11 and the States may use funds made available 

12 under section 9013(1) to carry out corrective 

13 actions with respect to a release of methyl ter14 tiary butyl ether or other ether fuel additive 

15 that presents a threat to human health, welfare, 

16 or the environment. 

17 ‘‘(B) APPLICABLE AUTHORITY.—Subpara18 graph (A) shall be carried out— 

19 ‘‘(i) in accordance with paragraph (2), 

20 except that a release with respect to which 

21 a corrective action is carried out under 

22 subparagraph (A) shall not be required to 

23 be from an underground storage tank; and 

24 ‘‘(ii) in the case of a State, in accord25 ance with a cooperative agreement entered 
34 

•S 606 IS

1 into by the Administrator and the State 

2 under paragraph (7).’’. 

3 (b) RELEASE PREVENTION AND COMPLIANCE.—Sub4 title I of the Solid Waste Disposal Act (42 U.S.C. 6991 

5 et seq.) is amended by striking section 9010 and inserting 

6 the following: 

7 ‘‘SEC. 9010. RELEASE PREVENTION AND COMPLIANCE. 

8 ‘‘Funds made available under section 9013(2) from 

9 the Leaking Underground Storage Tank Trust Fund may 

10 be used for conducting inspections, or for issuing orders 

11 or bringing actions under this subtitle— 

12 ‘‘(1) by a State (pursuant to section 

13 9003(h)(7)) acting under— 

14 ‘‘(A) a program approved under section 

15 9004; or 

16 ‘‘(B) State requirements regulating under17 ground storage tanks that are similar or iden18 tical to this subtitle, as determined by the Ad19 ministrator; and 

20 ‘‘(2) by the Administrator, acting under this 

21 subtitle or a State program approved under section 

22 9004. 

23 ‘‘SEC. 9011. AUTHORIZATION OF APPROPRIATIONS. 

24 ‘‘In addition to amounts made available under section 

25 2007(f), there are authorized to be appropriated from the 
35 

•S 606 IS

1 Leaking Underground Storage Tank Trust Fund, notwith2 standing section 9508(c)(1) of the Internal Revenue Code 

3 of 1986— 

4 ‘‘(1) to carry out section 9003(h)(12), 

5 $200,000,000 for fiscal year 2005, to remain avail6 able until expended; and 

7 ‘‘(2) to carry out section 9010, $30,000,000 for 

8 each of fiscal years 2005 through 2009.’’. 

9 (c) TECHNICAL AMENDMENTS.— 

10 (1) Section 1001 of the Solid Waste Disposal 

11 Act (42 U.S.C. prec. 6901) is amended by striking 

12 the item relating to section 9010 and inserting the 

13 following: 

‘‘Sec. 9010. Release prevention and compliance. 

‘‘Sec. 9011. Authorization of appropriations.’’. 

14 (2) Section 9001(3)(A) of the Solid Waste Dis15 posal Act (42 U.S.C. 6991(3)(A)) is amended by 

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

17 (3) Section 9003(f)(1) of the Solid Waste Dis18 posal Act (42 U.S.C. 6991b(f)(1)) is amended by 

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

20 inserting ‘‘subsections (c) and (d)’’. 

21 (4) Section 9004(a) of the Solid Waste Disposal 

22 Act (42 U.S.C. 6991c(a)) is amended in the second 

23 sentence by striking ‘‘referred to’’ and all that fol-
36 

•S 606 IS

1 lows and inserting ‘‘referred to in subparagraph (A) 

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

3 (5) Section 9005 of the Solid Waste Disposal 

4 Act (42 U.S.C. 6991d) is amended— 

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

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

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

8 ‘‘relevent’’ and inserting ‘‘relevant’’; and 

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

10 ‘‘Evironmental’’ and inserting ‘‘Environ11 mental’’. 

12 SEC. 203. RESTRICTIONS ON THE USE OF MTBE. 

13 (a) FINDINGS.—Congress finds that— 

14 (1) since 1979, methyl tertiary butyl ether (re15 ferred to in this section as ‘‘MTBE’’) has been used 

16 nationwide at low levels in gasoline to replace lead 

17 as an octane booster or anti-knocking agent; 

18 (2) Public Law 101–549 (commonly known as 

19 the ‘‘Clean Air Act Amendments of 1990’’) (42 

20 U.S.C. 7401 et seq.) established a fuel oxygenate 

21 standard under which reformulated gasoline must 

22 contain at least 2 percent oxygen by weight; 

23 (3) at the time of the adoption of the fuel oxy24 genate standard, Congress was aware that— 
37 

•S 606 IS

1 (A) significant use of MTBE could result 

2 from the adoption of that standard; and 

3 (B) the use of MTBE would likely be im4 portant to the cost-effective implementation of 

5 that standard; 

6 (4) Congress is aware that gasoline and its 

7 component additives have leaked from storage tanks, 

8 with consequences for water quality; 

9 (5) the fuel industry responded to the fuel oxy10 genate standard established by Public Law 101–549 

11 by making substantial investments in— 

12 (A) MTBE production capacity; and 

13 (B) systems to deliver MTBE-containing 

14 gasoline to the marketplace; 

15 (6) when leaked or spilled into the environment, 

16 MTBE may cause serious problems of drinking 

17 water quality; 

18 (7) in recent years, MTBE has been detected in 

19 water sources throughout the United States; 

20 (8) MTBE can be detected by smell and taste 

21 at low concentrations; 

22 (9) while small quantities of MTBE can render 

23 water supplies unpalatable, the precise human health 

24 effects of MTBE consumption at low levels are yet 

25 unknown as of the date of enactment of this Act; 
38 

•S 606 IS

1 (10) in the report entitled ‘‘Achieving Clean Air 

2 and Clean Water: The Report of the Blue Ribbon 

3 Panel on Oxygenates in Gasoline’’ and dated Sep4 tember 1999, Congress was urged— 

5 (A) to eliminate the fuel oxygenate stand6 ard; 

7 (B) to greatly reduce use of MTBE; and 

8 (C) to maintain the environmental per9 formance of reformulated gasoline; 

10 (11) Congress has— 

11 (A) reconsidered the relative value of 

12 MTBE in gasoline; and 

13 (B) decided to eliminate use of MTBE as 

14 a fuel additive; 

15 (12) the timeline for elimination of use of 

16 MTBE as a fuel additive must be established in a 

17 manner that achieves an appropriate balance among 

18 the goals of— 

19 (A) environmental protection; 

20 (B) adequate energy supply; and 

21 (C) reasonable fuel prices; and 

22 (13) it is appropriate for Congress to provide 

23 some limited transition assistance— 

24 (A) to merchant producers of MTBE who 

25 produced MTBE in response to a market cre-
39 

•S 606 IS

1 ated by the oxygenate requirement contained in 

2 the Clean Air Act (42 U.S.C. 7401 et seq.); and 

3 (B) for the purpose of mitigating any fuel 

4 supply problems that may result from elimi5 nation of a widely-used fuel additive. 

6 (b) PURPOSES.—The purposes of this section are— 

7 (1) to eliminate use of MTBE as a fuel oxygen8 ate; and 

9 (2) to provide assistance to merchant producers 

10 of MTBE in making the transition from producing 

11 MTBE to producing other fuel additives. 

12 (c) AUTHORITY FOR WATER QUALITY PROTECTION

13 FROM FUELS.—Section 211(c) of the Clean Air Act (42 

14 U.S.C. 7545(c)) is amended— 

15 (1) in paragraph (1)(A)— 

16 (A) by inserting ‘‘fuel or fuel additive or’’ 

17 after ‘‘Administrator any’’; and 

18 (B) by striking ‘‘air pollution which’’ and 

19 inserting ‘‘air pollution, or water pollution, 

20 that’’; 

21 (2) in paragraph (4)(B), by inserting ‘‘or water 

22 quality protection,’’ after ‘‘emission control,’’; and 

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

24 ‘‘(5) RESTRICTIONS ON USE OF MTBE.— 
40 

•S 606 IS

1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (E), not later than 4 years after the date 

3 of enactment of this paragraph, the use of 

4 methyl tertiary butyl ether in motor vehicle fuel 

5 in any State other than a State described in 

6 subparagraph (C) is prohibited. 

7 ‘‘(B) REGULATIONS.—The Administrator 

8 shall promulgate regulations to effect the prohi9 bition in subparagraph (A). 

10 ‘‘(C) STATES THAT AUTHORIZE USE.—A 

11 State described in this subparagraph is a State 

12 that submits to the Administrator a notice that 

13 the State authorizes use of methyl tertiary 

14 butyl ether in motor vehicle fuel sold or used in 

15 the State. 

16 ‘‘(D) PUBLICATION OF NOTICE.—The Ad17 ministrator shall publish in the Federal Reg18 ister each notice submitted by a State under 

19 subparagraph (C). 

20 ‘‘(E) TRACE QUANTITIES.—In carrying out 

21 subparagraph (A), the Administrator may allow 

22 trace quantities of methyl tertiary butyl ether, 

23 not to exceed 0.5 percent by volume, to be 

24 present in motor vehicle fuel in cases that the 

25 Administrator determines to be appropriate. 
41 

•S 606 IS

1 ‘‘(6) MTBE MERCHANT PRODUCER CONVER2 SION ASSISTANCE.— 

3 ‘‘(A) IN GENERAL.— 

4 ‘‘(i) GRANTS.—The Secretary of En5 ergy, in consultation with the Adminis6 trator, may make grants to merchant pro7 ducers of methyl tertiary butyl ether in the 

8 United States to assist the producers in 

9 the conversion of eligible production facili10 ties described in subparagraph (C) to the 

11 production of— 

12 ‘‘(I) iso-octane or alkylates, un13 less the Administrator, in consultation 

14 with the Secretary of Energy, deter15 mines that transition assistance for 

16 the production of iso-octane or 

17 alkylates is inconsistent with the cri18 teria specified in subparagraph (B); 

19 and 

20 ‘‘(II) any other fuel additive that 

21 meets the criteria specified in sub22 paragraph (B). 

23 ‘‘(B) CRITERIA.—The criteria referred to 

24 in subparagraph (A) are that— 
42 

•S 606 IS

1 ‘‘(i) use of the fuel additive is con2 sistent with this subsection; 

3 ‘‘(ii) the Administrator has not deter4 mined that the fuel additive may reason5 ably be anticipated to endanger public 

6 health or the environment; 

7 ‘‘(iii) the fuel additive has been reg8 istered and tested, or is being tested, in ac9 cordance with the requirements of this sec10 tion; and 

11 ‘‘(iv) the fuel additive will contribute 

12 to replacing quantities of motor vehicle fuel 

13 rendered unavailable as a result of para14 graph (5). 

15 ‘‘(C) ELIGIBLE PRODUCTION FACILI16 TIES.—A production facility shall be eligible to 

17 receive a grant under this paragraph if the pro18 duction facility— 

19 ‘‘(i) is located in the United States; 

20 and 

21 ‘‘(ii) produced methyl tertiary butyl 

22 ether for consumption in nonattainment 

23 areas during the period— 

24 ‘‘(I) beginning on the date of en25 actment of this paragraph; and 
43 

•S 606 IS

1 ‘‘(II) ending on the effective date 

2 of the prohibition on the use of methyl 

3 tertiary butyl ether under paragraph 

4 (5). 

5 ‘‘(D) AUTHORIZATION OF APPROPRIA6 TIONS.—There is authorized to be appropriated 

7 to carry out this paragraph $250,000,000 for 

8 each of fiscal years 2005 through 2008.’’. 

9 (d) NO EFFECT ON LAW CONCERNING STATE AU10 THORITY.—The amendments made by subsection (c) have 

11 no effect on the law in effect on the day before the date 

12 of enactment of this Act concerning the authority of 

13 States to limit the use of methyl tertiary butyl ether in 

14 motor vehicle fuel. 

15 SEC. 204. ELIMINATION OF OXYGEN CONTENT REQUIRE16 MENT FOR REFORMULATED GASOLINE. 

17 (a) ELIMINATION.— 

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

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

20 (A) in paragraph (2)— 

21 (i) in the second sentence of subpara22 graph (A), by striking ‘‘(including the oxy23 gen content requirement contained in sub24 paragraph (B))’’; 

25 (ii) by striking subparagraph (B); and 
44 

•S 606 IS

1 (iii) by redesignating subparagraphs 

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

3 (C), respectively; 

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

5 (v); and 

6 (C) in paragraph (7)— 

7 (i) in subparagraph (A)— 

8 (I) by striking clause (i); and 

9 (II) by redesignating clauses (ii) 

10 and (iii) as clauses (i) and (ii), respec11 tively; and 

12 (ii) in subparagraph (C)— 

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

14 (II) by redesignating clause (iii) 

15 as clause (ii). 

16 (2) APPLICABILITY.—The amendments made 

17 by paragraph (1) apply— 

18 (A) in the case of a State that has received 

19 a waiver under section 209(b) of the Clean Air 

20 Act (42 U.S.C. 7543(b)), beginning on the date 

21 of enactment of this Act; and 

22 (B) in the case of any other State, begin23 ning 270 days after the date of enactment of 

24 this Act. 
45 

•S 606 IS

1 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS2 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

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

4 (1) by striking ‘‘Within 1 year after the enact5 ment of the Clean Air Act Amendments of 1990,’’ 

6 and inserting the following: 

7 ‘‘(A) IN GENERAL.—Not later than No8 vember 15, 1991,’’; and 

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

10 ‘‘(B) MAINTENANCE OF TOXIC AIR POL11 LUTANT EMISSIONS REDUCTIONS FROM REFOR12 MULATED GASOLINE.— 

13 ‘‘(i) DEFINITION OF PADD.—In this 

14 subparagraph the term ‘PADD’ means a 

15 Petroleum Administration for Defense Dis16 trict. 

17 ‘‘(ii) REGULATIONS CONCERNING

18 EMISSIONS OF TOXIC AIR POLLUTANTS.— 

19 Not later than 270 days after the date of 

20 enactment of this subparagraph, the Ad21 ministrator shall establish by regulation, 

22 for each refinery or importer (other than a 

23 refiner or importer in a State that has re24 ceived a waiver under section 209(b) with 

25 respect to gasoline produced for use in that 
46 

•S 606 IS

1 State), standards for toxic air pollutants 

2 from use of the reformulated gasoline pro3 duced or distributed by the refiner or im4 porter that maintain the reduction of the 

5 average annual aggregate emissions of 

6 toxic air pollutants for reformulated gaso7 line produced or distributed by the refiner 

8 or importer during calendar years 1999 

9 and 2000 (as determined on the basis of 

10 data collected by the Administrator with 

11 respect to the refiner or importer). 

12 ‘‘(iii) STANDARDS APPLICABLE TO

13 SPECIFIC REFINERIES OR IMPORTERS.— 

14 ‘‘(I) APPLICABILITY OF STAND15 ARDS.—For any calendar year, the 

16 standards applicable to a refiner or 

17 importer under clause (ii) shall apply 

18 to the quantity of gasoline produced 

19 or distributed by the refiner or im20 porter in the calendar year only to the 

21 extent that the quantity is less than 

22 or equal to the average annual quan23 tity of reformulated gasoline produced 

24 or distributed by the refiner or im-
47 

•S 606 IS

1 porter during calendar years 1999 

2 and 2000. 

3 ‘‘(II) APPLICABILITY OF OTHER

4 STANDARDS.—For any calendar year, 

5 the quantity of gasoline produced or 

6 distributed by a refiner or importer 

7 that is in excess of the quantity sub8 ject to subclause (I) shall be subject 

9 to standards for emissions of toxic air 

10 pollutants promulgated under sub11 paragraph (A) and paragraph (3)(B). 

12 ‘‘(iv) CREDIT PROGRAM.—The Admin13 istrator shall provide for the granting and 

14 use of credits for emissions of toxic air pol15 lutants in the same manner as provided in 

16 paragraph (7). 

17 ‘‘(v) REGIONAL PROTECTION OF

18 TOXICS REDUCTION BASELINES.— 

19 ‘‘(I) IN GENERAL.—Not later 

20 than 60 days after the date of enact21 ment of this subparagraph, and not 

22 later than April 1 of each calendar 

23 year that begins after that date of en24 actment, the Administrator shall pub25 lish in the Federal Register a report 
48 

•S 606 IS

1 that specifies, with respect to the pre2 vious calendar year— 

3 ‘‘(aa) the quantity of refor4 mulated gasoline produced that is 

5 in excess of the average annual 

6 quantity of reformulated gasoline 

7 produced in 1999 and 2000; and 

8 ‘‘(bb) the reduction of the 

9 average annual aggregate emis10 sions of toxic air pollutants in 

11 each PADD, based on retail sur12 vey data or data from other ap13 propriate sources. 

14 ‘‘(II) EFFECT OF FAILURE TO

15 MAINTAIN AGGREGATE TOXICS RE16 DUCTIONS.—If, in any calendar year, 

17 the reduction of the average annual 

18 aggregate emissions of toxic air pol19 lutants in a PADD fails to meet or 

20 exceed the reduction of the average 

21 annual aggregate emissions of toxic 

22 air pollutants in the PADD in cal23 endar years 1999 and 2000, the Ad24 ministrator, not later than 90 days 

25 after the date of publication of the re-
49 

•S 606 IS

1 port for the calendar year under sub2 clause (I), shall— 

3 ‘‘(aa) identify, to the max4 imum extent practicable, the rea5 sons for the failure, including the 

6 sources, volumes, and character7 istics of reformulated gasoline 

8 that contributed to the failure; 

9 and 

10 ‘‘(bb) promulgate revisions 

11 to the regulations promulgated 

12 under clause (ii), to take effect 

13 not earlier than 180 days but not 

14 later than 270 days after the 

15 date of promulgation, to provide 

16 that, notwithstanding clause 

17 (iii)(II), all reformulated gasoline 

18 produced or distributed at each 

19 refiner or importer shall meet the 

20 standards applicable under clause 

21 (iii)(I) beginning not later than 

22 April 1 of the calendar year fol23 lowing publication of the report 

24 under subclause (I) and in each 

25 calendar year thereafter. 
50 

•S 606 IS

1 ‘‘(vi) REGULATIONS TO CONTROL

2 HAZARDOUS AIR POLLUTANTS FROM

3 MOTOR VEHICLES AND MOTOR VEHICLE

4 FUELS.—Not later than July 1, 2005, the 

5 Administrator shall promulgate final regu6 lations to control hazardous air pollutants 

7 from motor vehicles and motor vehicle 

8 fuels, as provided for in section 80.1045 of 

9 title 40, Code of Federal Regulations (as 

10 in effect on the date of enactment of this 

11 subparagraph).’’. 

12 (c) COMMINGLING.— 

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

14 Air Act (42 U.S.C. 7545(k)) is amended by adding 

15 at the end the following: 

16 ‘‘(11) COMMINGLING.—The regulations under 

17 paragraph (1) shall permit the commingling at a re18 tail station of reformulated gasoline containing eth19 anol and reformulated gasoline that does not contain 

20 ethanol if, each time such commingling occurs— 

21 ‘‘(A) the retailer notifies the Administrator 

22 before the commingling, identifying the exact 

23 location of the retail station and the specific 

24 tank in which the commingling will take place; 

25 and 
51 

•S 606 IS

1 ‘‘(B) the retailer certifies that the reformu2 lated gasoline resulting from the commingling 

3 will meet all applicable requirements for refor4 mulated gasoline, including content and emis5 sion performance standards.’’. 

6 (d) CONSOLIDATION IN REFORMULATED GASOLINE

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

8 of enactment of this Act, the Administrator of the Envi9 ronmental Protection Agency shall revise the reformulated 

10 gasoline regulations under subpart D of part 80 of title 

11 40, Code of Federal Regulations, to consolidate the regula12 tions applicable to VOC-Control Regions 1 and 2 under 

13 section 80.41 of that title by eliminating the less stringent 

14 requirements applicable to gasoline designated for VOC15 Control Region 2 and instead applying the more stringent 

16 requirements applicable to gasoline designated for VOC17 Control Region 1. 

18 (e) SAVINGS CLAUSE.— 

19 (1) IN GENERAL.—Nothing in this section or 

20 any amendment made by this section affects or prej21 udices any legal claim or action with respect to regu22 lations promulgated by the Administrator before the 

23 date of enactment of this Act regarding— 

24 (A) emissions of toxic air pollutants from 

25 motor vehicles; or 
52 

•S 606 IS

1 (B) the adjustment of standards applicable 

2 to a specific refinery or importer made under 

3 those regulations. 

4 (2) ADJUSTMENT OF STANDARDS.— 

5 (A) APPLICABILITY.—The Administrator 

6 may apply any adjustments to the standards 

7 applicable to a refinery or importer under sub8 paragraph (B)(iii)(I) of section 211(k)(1) of the 

9 Clean Air Act (as added by subsection (b)(2)), 

10 except that— 

11 (i) the Administrator shall revise the 

12 adjustments to be based only on calendar 

13 years 1999 and 2000; 

14 (ii) any such adjustment shall not be 

15 made at a level below the average percent16 age of reductions of emissions of toxic air 

17 pollutants for reformulated gasoline sup18 plied to PADD I during calendar years 

19 1999 and 2000; and 

20 (iii) in the case of an adjustment 

21 based on toxic air pollutant emissions from 

22 reformulated gasoline significantly below 

23 the national annual average emissions of 

24 toxic air pollutants from all reformulated 

25 gasoline— 
53 

•S 606 IS

1 (I) the Administrator may revise 

2 the adjustment to take account of the 

3 scope of the prohibition on methyl ter4 tiary butyl ether imposed by para5 graph (5) of section 211(c) of the 

6 Clean Air Act (as added by section 

7 203(c)); and 

8 (II) any such adjustment shall 

9 require the refiner or importer, to the 

10 maximum extent practicable, to main11 tain the reduction achieved during cal12 endar years 1999 and 2000 in the av13 erage annual aggregate emissions of 

14 toxic air pollutants from reformulated 

15 gasoline produced or distributed by 

16 the refiner or importer. 

17 SEC. 205. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS 

18 OF FUELS AND FUEL ADDITIVES. 

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

20 7545(b)) is amended— 

21 (1) in paragraph (2)— 

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

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

24 (B) by striking subparagraph (A) and in25 serting the following: 
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1 ‘‘(A) to conduct tests to determine poten2 tial public health and environmental effects of 

3 the fuel or additive (including carcinogenic, 

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

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

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

7 BLENDSTOCKS.— 

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

9 after the date of enactment of this paragraph, 

10 the Administrator shall— 

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

12 public health (including the effects on chil13 dren, pregnant women, minority or low-in14 come communities, and other sensitive pop15 ulations), air quality, and water resources 

16 of increased use of, and the feasibility of 

17 using as substitutes for methyl tertiary 

18 butyl ether in gasoline— 

19 ‘‘(I) ethyl tertiary butyl ether; 

20 ‘‘(II) tertiary amyl methyl ether; 

21 ‘‘(III) di-isopropyl ether; 

22 ‘‘(IV) tertiary butyl alcohol; 

23 ‘‘(V) other ethers and heavy alco24 hols, as determined by then Adminis25 trator; 
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1 ‘‘(VI) ethanol; 

2 ‘‘(VII) iso-octane; and 

3 ‘‘(VIII) alkylates; and 

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

5 public health (including the effects on chil6 dren, pregnant women, minority or low-in7 come communities, and other sensitive pop8 ulations), air quality, and water resources 

9 of the adjustment for ethanol-blended re10 formulated gasoline to the volatile organic 

11 compounds performance requirements that 

12 are applicable under paragraphs (1) and 

13 (3) of section 211(k); and 

14 ‘‘(iii) submit to the Committee on En15 vironment and Public Works of the Senate 

16 and the Committee on Energy and Com17 merce of the House of Representatives a 

18 report describing the results of the studies 

19 under clauses (i) and (ii). 

20 ‘‘(B) CONTRACTS FOR STUDY.—In car21 rying out this paragraph, the Administrator 

22 may enter into 1 or more contracts with non23 governmental entities such as— 

24 ‘‘(i) the national energy laboratories; 

25 and 
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1 ‘‘(ii) institutions of higher education 

2 (as defined in section 101 of the Higher 

3 Education Act of 1965 (20 U.S.C. 

4 1001)).’’. 

5 SEC. 206. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

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

7 (as amended by section 101(a)) is amended by inserting 

8 after subsection (p) the following: 

9 ‘‘(q) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

10 AND EMISSIONS MODEL.— 

11 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.— 

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

13 years after the date of enactment of this para14 graph, the Administrator shall publish for pub15 lic comment a draft analysis of the changes in 

16 emissions of air pollutants and air quality due 

17 to the use of motor vehicle fuel and fuel addi18 tives resulting from implementation of the 

19 amendments made by the Federal Reformulated 

20 Fuels Act of 2005. 

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

22 reasonable opportunity for comment but not 

23 later than 5 years after the date of enactment 

24 of this paragraph, the Administrator shall pub25 lish the analysis in final form. 
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1 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

2 this subsection, as soon as the necessary data are 

3 available, the Administrator shall develop and final4 ize an emissions model that reasonably reflects the 

5 effects of gasoline characteristics or components on 

6 emissions from vehicles in the motor vehicle fleet 

7 during calendar year 2007.’’. 

8 SEC. 207. ADDITIONAL OPT-IN AREAS UNDER REFORMU9 LATED GASOLINE PROGRAM. 

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

11 7545(k)(6)) is amended— 

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

13 Upon’’ and inserting the following: 

14 ‘‘(6) OPT-IN AREAS.— 

15 ‘‘(A) CLASSIFIED AREAS.— 

16 ‘‘(i) IN GENERAL.—Upon’’; 

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

18 and inserting the following: 

19 ‘‘(ii) EFFECT OF INSUFFICIENT DO20 MESTIC CAPACITY TO PRODUCE REFORMU21 LATED GASOLINE.—If’’; 

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

23 paragraph (2))— 

24 (A) in the first sentence, by striking ‘‘sub25 paragraph (A)’’ and inserting ‘‘clause (i)’’; and 
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1 (B) in the second sentence, by striking 

2 ‘‘this paragraph’’ and inserting ‘‘this subpara3 graph’’; and 

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

5 ‘‘(B) OZONE TRANSPORT REGION.— 

6 ‘‘(i) APPLICATION OF PROHIBITION.— 

7 ‘‘(I) IN GENERAL.—On applica8 tion of the Governor of a State in the 

9 ozone transport region established by 

10 section 184(a), the Administrator, not 

11 later than 180 days after the date of 

12 receipt of the application, shall apply 

13 the prohibition specified in paragraph 

14 (5) to any area in the State (other 

15 than an area classified as a marginal, 

16 moderate, serious, or severe ozone 

17 nonattainment area under subpart 2 

18 of part D of title I) unless the Admin19 istrator determines under clause (iii) 

20 that there is insufficient capacity to 

21 supply reformulated gasoline. 

22 ‘‘(II) PUBLICATION OF APPLICA23 TION.—As soon as practicable after 

24 the date of receipt of an application 

25 under subclause (I), the Adminis-
59 

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1 trator shall publish the application in 

2 the Federal Register. 

3 ‘‘(ii) PERIOD OF APPLICABILITY.— 

4 Under clause (i), the prohibition specified 

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

6 ‘‘(I) commencing as soon as prac7 ticable but not later than 2 years 

8 after the date of approval by the Ad9 ministrator of the application of the 

10 Governor of the State; and 

11 ‘‘(II) ending not earlier than 4 

12 years after the commencement date 

13 determined under subclause (I). 

14 ‘‘(iii) EXTENSION OF COMMENCEMENT

15 DATE BASED ON INSUFFICIENT CAPAC16 ITY.— 

17 ‘‘(I) IN GENERAL.—If, after re18 ceipt of an application from a Gov19 ernor of a State under clause (i), the 

20 Administrator determines, on the Ad21 ministrator’s own motion or on peti22 tion of any person, after consultation 

23 with the Secretary of Energy, that 

24 there is insufficient capacity to supply 
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1 reformulated gasoline, the Adminis2 trator, by regulation— 

3 ‘‘(aa) shall extend the com4 mencement date with respect to 

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

6 not more than 1 year; and 

7 ‘‘(bb) may renew the exten8 sion under item (aa) for 2 addi9 tional periods, each of which 

10 shall not exceed 1 year. 

11 ‘‘(II) DEADLINE FOR ACTION ON

12 PETITIONS.—The Administrator shall 

13 act on any petition submitted under 

14 subclause (I) not later than 180 days 

15 after the date of receipt of the peti16 tion.’’. 

17 SEC. 208. FEDERAL ENFORCEMENT OF STATE FUELS RE18 QUIREMENTS. 

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

20 7545(c)(4)(C)) is amended— 

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

22 following: 

23 ‘‘(C) AUTHORITY OF STATE TO CONTROL

24 FUELS AND FUEL ADDITIVES FOR REASONS OF

25 NECESSITY.— 
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1 ‘‘(i) IN GENERAL.—A State’’; and 

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

3 ‘‘(ii) ENFORCEMENT BY THE ADMIN4 ISTRATOR.—In any case in which a State 

5 prescribes and enforces a control or prohi6 bition under clause (i), the Administrator, 

7 at the request of the State, shall enforce 

8 the control or prohibition as if the control 

9 or prohibition had been adopted under the 

10 other provisions of this section.’’. 

11 SEC. 209. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

12 STUDY. 

13 (a) STUDY.— 

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

15 Environmental Protection Agency and the Secretary 

16 of Energy shall jointly conduct a study of Federal, 

17 State, and local requirements concerning motor vehi18 cle fuels, including— 

19 (A) requirements relating to reformulated 

20 gasoline, volatility (measured in Reid vapor 

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

22 (B) other requirements that vary from 

23 State to State, region to region, or locality to 

24 locality. 
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1 (2) REQUIRED ELEMENTS.—The study shall as2 sess— 

3 (A) the effect of the variety of require4 ments described in paragraph (1) on the supply, 

5 quality, and price of motor vehicle fuels avail6 able to the consumer; 

7 (B) the effect of the requirements de8 scribed in paragraph (1) on achievement of— 

9 (i) national, regional, and local air 

10 quality standards and goals; and 

11 (ii) related environmental and public 

12 health protection standards and goals (in13 cluding the protection of children, preg14 nant women, minority or low-income com15 munities, and other sensitive populations); 

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

17 motor vehicle fuel regulations, including mul18 tiple motor vehicle fuel requirements, on— 

19 (i) domestic refiners; 

20 (ii) the fuel distribution system; and 

21 (iii) industry investment in new capac22 ity; 

23 (D) the effect of the requirements de24 scribed in paragraph (1) on emissions from ve25 hicles, refiners, and fuel handling facilities; 
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1 (E) the feasibility of developing national or 

2 regional motor vehicle fuel slates for the 48 

3 contiguous States that, while protecting and im4 proving air quality at the national, regional, 

5 and local levels, could— 

6 (i) enhance flexibility in the fuel dis7 tribution infrastructure and improve fuel 

8 fungibility; 

9 (ii) reduce price volatility and costs to 

10 consumers and producers; 

11 (iii) provide increased liquidity to the 

12 gasoline market; and 

13 (iv) enhance fuel quality, consistency, 

14 and supply; and 

15 (F) the feasibility of providing incentives, 

16 and the need for the development of national 

17 standards necessary, to promote cleaner burn18 ing motor vehicle fuel. 

19 (b) REPORT.— 

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

21 2008, the Administrator of the Environmental Pro22 tection Agency and the Secretary of Energy shall 

23 submit to Congress a report on the results of the 

24 study conducted under subsection (a). 

25 (2) RECOMMENDATIONS.— 
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1 (A) IN GENERAL.—The report shall con2 tain recommendations for legislative and admin3 istrative actions that may be taken— 

4 (i) to improve air quality; 

5 (ii) to reduce costs to consumers and 

6 producers; and 

7 (iii) to increase supply liquidity. 

8 (B) REQUIRED CONSIDERATIONS.—The 

9 recommendations under subparagraph (A) shall 

10 take into account the need to provide advance 

11 notice of required modifications to refinery and 

12 fuel distribution systems in order to ensure an 

13 adequate supply of motor vehicle fuel in all 

14 States. 

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

16 the Administrator of the Environmental Protection 

17 Agency and the Secretary of Energy shall consult 

18 with— 

19 (A) the Governors of the States; 

20 (B) automobile manufacturers; 

21 (C) State and local air pollution control 

22 regulators; 

23 (D) public health experts; 

24 (E) motor vehicle fuel producers and dis25 tributors; and 
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1 (F) the public. 

Æ