I 

108TH CONGRESS 

1ST SESSION H. R. 837

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2003

Mr. PETERSON of Minnesota (for himself and Mr. OSBORNE) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

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 ‘‘Fuels Security Act of 2003’’. 

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

7 this Act is as follows:
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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. Commercial byproducts from municipal solid waste loan guarantee 

program. 

Sec. 104. Data collection. 

TITLE II—FEDERAL REFORMULATED FUELS 

Sec. 201. Short title. 

Sec. 202. Leaking underground storage tanks. 

Sec. 203. Authority for water quality protection from fuels. 

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. 

Sec. 210. Review of Federal procurement initiatives relating to use of recycled 

products and fleet and transportation efficiency.

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

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

3 (42 U.S.C. 7545) is amended—

4 (1) by redesignating subsection (o) as sub5 section (q); and 

6 (2) by inserting after subsection (n) the fol7 lowing: 

8 ‘‘(o) RENEWABLE FUEL PROGRAM.— 

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

10 ‘‘(A) CELLULOSIC BIOMASS ETHANOL.—

11 The term ‘cellulosic biomass ethanol’ means 

12 ethanol derived from any lignocellulosic or 

13 hemicellulosic matter that is available on a re14 newable or recurring basis, including—

15 ‘‘(i) dedicated energy crops and trees; 
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1 ‘‘(ii) wood and wood residues; 

2 ‘‘(iii) plants; 

3 ‘‘(iv) grasses; 

4 ‘‘(v) agricultural residues; 

5 ‘‘(vi) fibers; 

6 ‘‘(vii) animal wastes and other waste 

7 materials; and 

8 ‘‘(viii) municipal solid waste. 

9 ‘‘(B) RENEWABLE FUEL.—

10 ‘‘(i) IN GENERAL.—The term ‘renew11 able fuel’ means motor vehicle fuel that—

12 ‘‘(I)(aa) is produced from grain, 

13 starch, oilseeds, or other biomass; or 

14 ‘‘(bb) is natural gas produced 

15 from a biogas source, including a 

16 landfill, sewage waste treatment plant, 

17 feedlot, or other place where decaying 

18 organic material is found; and 

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

20 the quantity of fossil fuel present in a 

21 fuel mixture used to operate a motor 

22 vehicle. 

23 ‘‘(ii) INCLUSION.—The term ‘renew24 able fuel’ includes cellulosic biomass eth25 anol and biodiesel (as defined in section 
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1 312(f) of the Energy Policy Act of 1992 

2 (42 U.S.C. 13220(f)). 

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

4 refinery’ means a refinery for which average ag5 gregate daily crude oil throughput for the cal6 endar year (as determined by dividing the ag7 gregate throughput for the calendar year by the 

8 number of days in the calendar year) does not 

9 exceed 75,000 barrels. 

10 ‘‘(2) RENEWABLE FUEL PROGRAM.—

11 ‘‘(A) IN GENERAL.—Not later than 1 year 

12 from enactment of this provision, the Adminis13 trator shall promulgate regulations ensuring 

14 that gasoline sold or dispensed to consumers in 

15 the United States, on an annual average basis, 

16 contains the applicable volume of renewable fuel 

17 as specified in subparagraph (B). Regardless of 

18 the date of promulgation, such regulations shall 

19 contain compliance provisions for refiners, 

20 blenders, and importers, as appropriate, to en21 sure that the requirements of this section are 

22 met, but shall not restrict where renewables can 

23 be used, or impose any per-gallon obligation for 

24 the use of renewables. If the Administrator does 

25 not promulgate such regulations, the applicable
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1 percentage, on a volume percentage of gasoline 

2 basis, shall be 1.62 in 2004. 

3 ‘‘(B) APPLICABLE VOLUME.—

4 ‘‘(i) CALENDAR YEARS 2004 THROUGH

5 2012.—For the purpose of subparagraph 

6 (A), the applicable volume for any of cal7 endar years 2004 through 2012 shall be 

8 determined in accordance with the fol9 lowing table:

‘‘Applicable volume of renewable fuel 

‘‘Calendar year: (In billions of gallons) 

2004 ..................................................................................... 2.3

2005 ..................................................................................... 2.6

2006 ..................................................................................... 2.9

2007 ..................................................................................... 3.2

2008 ..................................................................................... 3.5

2009 ..................................................................................... 3.9

2010 ..................................................................................... 4.3

2011 ..................................................................................... 4.7

2012 ..................................................................................... 5.0.

10 ‘‘(ii) CALENDAR YEAR 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 equal to the product ob15 tained by multiplying—

16 ‘‘(I) the number of gallons of 

17 gasoline that the Administrator esti18 mates will be sold or introduced into 

19 commerce in the calendar year; and 

20 ‘‘(II) the ratio that—
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1 ‘‘(aa) 5.0 billion gallons of 

2 renewable fuels; bears to 

3 ‘‘(bb) the number of gallons 

4 of gasoline sold or introduced 

5 into commerce in calendar year 

6 2012. 

7 ‘‘(3) APPLICABLE PERCENTAGES.—Not later 

8 than October 31 of each calendar year, through 

9 2011, the Administrator of the Energy Information 

10 Administration shall provide the Administrator an 

11 estimate of the volumes of gasoline sales in the 

12 United States for the coming calendar year. Based 

13 on such estimates, the Administrator shall by No14 vember 30 of each calendar year, through 2011, de15 termine and publish in the Federal Register, the re16 newable fuel obligation, on a volume percentage of 

17 gasoline basis, applicable to refiners, blenders, dis18 tributors and importers, as appropriate, for the com19 ing calendar year, to ensure that the requirements 

20 of paragraph (2) are met. For each calendar year, 

21 the Administrator shall establish a single applicable 

22 percentage that applies to all parties, and make pro23 vision to avoid redundant obligations. In determining 

24 the applicable percentages, the Administrator shall 

25 make adjustments to account for the use of renew-
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1 able fuels by exempt small refineries during the pre2 vious year. 

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

4 purpose of paragraph (2), 1 gallon of cellulosic bio5 mass ethanol shall be considered to be the equivalent 

6 of 1.5 gallon of renewable fuel. 

7 ‘‘(5) CREDIT PROGRAM.—

8 ‘‘(A) IN GENERAL.—The regulations pro9 mulgated to carry out this subsection shall pro10 vide for the generation of an appropriate 

11 amount of credits by any person that refines, 

12 blends, or imports gasoline that contains a 

13 quantity of renewable fuel that is greater than 

14 the quantity required under paragraph (2). 

15 Such regulations shall provide for the genera16 tion of an appropriate amount of credits for 

17 biodiesel fuel. If a small refinery notifies the 

18 Administrator that it waives the exemption pro19 vided by this Act, the regulations shall provide 

20 for the generation of credits by the small refin21 ery beginning in the year following such notifi22 cation. 

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

24 generates credits under subparagraph (A) may 

25 use the credits, or transfer all or a portion of 
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1 the credits to another person, for the purpose 

2 of complying with paragraph (2). 

3 ‘‘(C) LIFE OF CREDITS.—A credit gen4 erated under this paragraph shall be valid to 

5 show compliance: 

6 (i) in the calendar year in which the 

7 credit was generated or the next calendar 

8 year, or 

9 (ii) in the calendar year in which the 

10 credit was generated or next two consecu11 tive calendar years if the Administrator 

12 promulgates regulations under paragraph 

13 (6). 

14 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

15 CREDITS.—The regulations promulgated to 

16 carry out this subsection shall include provi17 sions allowing any person that is unable to gen18 erate or purchase sufficient credits to meet the 

19 requirements under paragraph (2) to carry for20 ward a renewables deficit provided that, in the 

21 calendar year following the year in which the 

22 renewables deficit is created, such person shall 

23 achieve compliance with the renewables require24 ment under paragraph (2), and shall generate 
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1 or purchase additional renewables credits to off2 set the renewables deficit of the previous year. 

3 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

4 FUEL USE.—

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

6 2004 through 2012, the Administrator of the 

7 Energy Information Administration, shall con8 duct a study of renewable fuels blending to de9 termine whether there are excessive seasonal 

10 variations in the use of renewable fuels. 

11 ‘‘(B) REGULATION OF EXCESSIVE SEA12 SONAL VARIATIONS.—If, for any calendar year, 

13 the Administrator of the Energy Information 

14 Administration, based on the study under sub15 paragraph (A), makes the determinations speci16 fied in subparagraph (C), the Administrator 

17 shall promulgate regulations to ensure that 35 

18 percent or more of the quantity of renewable 

19 fuels necessary to meet the requirement of 

20 paragraph (2) is used during each of the peri21 ods specified in subparagraph (D) of each sub22 sequent calendar year. 

23 ‘‘(C) DETERMINATIONS.—The determina24 tions referred to in subparagraph (B) are 

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

3 the requirement of paragraph (2) has been 

4 used during one of the 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 two periods referred 

11 to in this paragraph are—

12 ‘‘(i) April through September; and 

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

15 ‘‘(E) EXCLUSIONS.—Renewable fuels 

16 blended or consumed in 2004 in a state which 

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

18 not be included in the study in subparagraph 

19 (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 quirement of paragraph (2) in whole or in part 

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

2 under this subsection—

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 requirement 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.—Not later than 180 days from enact5 ment, the Secretary of Energy shall complete for the 

6 Administrator a study assessing whether the renew7 able fuels requirement under paragraph (2) will like8 ly result in significant adverse consumer impacts in 

9 2004, on a national, regional or state basis. Such 

10 study shall evaluate renewable fuel supplies and 

11 prices, blendstock supplies, and supply and distribu12 tion system capabilities. Based on such study, the 

13 Secretary shall make specific recommendations to 

14 the Administrator regarding waiver of the require15 ments of paragraph (2), in whole or in part, to avoid 

16 any such adverse impacts. Within 270 days from en17 actment, the Administrator shall, consistent with the 

18 recommendations of the Secretary waive, in whole or 

19 in part, the renewable fuels requirement under para20 graph (2) by reducing the national quantity of re21 newable fuel required under this subsection in 2004. 

22 This provision shall not be interpreted as limiting 

23 the Administrator’s authority to waive the require24 ments of paragraph (2) in whole, or in part, under 

25 paragraph (7), pertaining to waivers. 
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1 ‘‘(9) SMALL REFINERIES.—

2 ‘‘(A) IN GENERAL.—The requirement of 

3 paragraph (2) shall not apply to small refineries 

4 until January 1, 2008. Not later than Decem5 ber 31, 2006, the Secretary of Energy shall 

6 complete for the Administrator a study to de7 termine whether the requirement of paragraph 

8 (2) would impose a disproportionate economic 

9 hardship on small refineries. For any small re10 finery that the Secretary of Energy determines 

11 would experience a disproportionate economic 

12 hardship, the Administrator shall extend the 

13 small refinery exemption for such small refinery 

14 for no less than two additional years. 

15 ‘‘(B) ECONOMIC HARDSHIP.—

16 ‘‘(i) EXTENSION OF EXEMPTION.—A 

17 small refinery may at any time petition the 

18 Administrator for an extension of the ex19 emption from the requirement of para20 graph (2) for the reason of dispropor21 tionate economic hardship. In evaluating a 

22 hardship petition, the Administrator, in 

23 consultation with the Secretary of Energy, 

24 shall consider the findings of the study in 

25 addition to other economic factors. 
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1 ‘‘(ii) DEADLINE FOR ACTION ON PETI2 TIONS.—The Administrator shall act on 

3 any petition submitted by a small refinery 

4 for a hardship exemption not later than 90 

5 days after the receipt of the petition. 

6 ‘‘(C) CREDIT PROGRAM.—If a small refin7 ery notifies the Administrator that it waives the 

8 exemption provided by this Act, the regulations 

9 shall provide for the generation of credits by 

10 the small refinery beginning in the year fol11 lowing such notification. 

12 ‘‘(D) OPT-IN FOR SMALL REFINERS.—A 

13 small refinery shall be subject to the require14 ments of this section if it notifies the Adminis15 trator that it waives the exemption under sub16 paragraph (A).’’. 

17 (b) PENALTIES AND ENFORCEMENT.—Section 

18 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

19 amended—

20 (1) in paragraph (1)—

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

22 (n)’’ each place it appears and inserting ‘‘(n) or 

23 (o)’’; and 

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

25 (m)’’ and inserting ‘‘(m), or (o)’’; and
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1 (2) in the first sentence of paragraph (2), by 

2 striking ‘‘and (n)’’ each place it appears and insert3 ing ‘‘(n), and (o)’’. 

4 (c) EXCLUSION FROM ETHANOL WAIVER.—Section 

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

6 amended—

7 (1) by redesignating paragraph (5) as para8 graph (6); and 

9 (2) by inserting after paragraph (4) the fol10 lowing: 

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

12 ‘‘(A) PROMULGATION OF REGULATIONS.—

13 Upon notification, accompanied by supporting 

14 documentation, from the Governor of a State 

15 that the Reid vapor pressure limitation estab16 lished by paragraph (4) will increase emissions 

17 that contribute to air pollution in any area in 

18 the State, the Administrator shall, by regula19 tion, apply, in lieu of the Reid vapor pressure 

20 limitation established by paragraph (4), the 

21 Reid vapor pressure limitation established by 

22 paragraph (1) to all fuel blends containing gas23 oline and 10 percent denatured anhydrous eth24 anol that are sold, offered for sale, dispensed, 

25 supplied, offered for supply, transported or in-
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1 troduced into commerce in the area during the 

2 high ozone season. 

3 ‘‘(B) DEADLINE FOR PROMULGATION.—

4 The Administrator shall promulgate regulations 

5 under subparagraph (A) not later than 90 days 

6 after the date of receipt of a notification from 

7 a Governor under that subparagraph. 

8 ‘‘(C) EFFECTIVE DATE.—

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

10 area in a State for which the Governor 

11 submits a notification under subparagraph 

12 (A), the regulations under that subpara13 graph shall take effect on the later of—

14 ‘‘(I) the first day of the first high 

15 ozone season for the area that begins 

16 after the date of receipt of the notifi17 cation; or 

18 ‘‘(II) 1 year after the date of re19 ceipt of the notification. 

20 ‘‘(ii) EXTENSION OF EFFECTIVE DATE

21 BASED ON DETERMINATION OF INSUFFI22 CIENT SUPPLY.—

23 ‘‘(I) IN GENERAL.—If, after re24 ceipt of a notification with respect to 

25 an area from a Governor of a State 
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1 under subparagraph (A), the Adminis2 trator determines, on the Administra3 tor’s own motion or on petition of any 

4 person and after consultation with the 

5 Secretary of Energy, that the promul6 gation of regulations described in sub7 paragraph (A) would result in an in8 sufficient supply of gasoline in the 

9 State, the Administrator, by regula10 tion—

11 ‘‘(aa) shall extend the effec12 tive date of the regulations under 

13 clause (i) with respect to the area 

14 for not more than 1 year; and 

15 ‘‘(bb) may renew the exten16 sion under item (aa) for two ad17 ditional periods, each of which 

18 shall not exceed 1 year. 

19 ‘‘(II) DEADLINE FOR ACTION ON

20 PETITIONS.—The Administrator shall 

21 act on any petition submitted under 

22 subclause (I) not later than 180 days 

23 after the date of receipt of the peti24 tion.’’. 

25 (d) SURVEY OF RENEWABLE FUEL MARKET.—
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1 (1) SURVEY AND REPORT.—Not later than De2 cember 1, 2005, and annually thereafter, the Admin3 istrator shall—

4 (A) conduct, with respect to each conven5 tional gasoline use area and each reformulated 

6 gasoline use area in each State, a survey to de7 termine the market shares of—

8 (i) conventional gasoline containing 

9 ethanol; 

10 (ii) reformulated gasoline containing 

11 ethanol; 

12 (iii) conventional gasoline containing 

13 renewable fuel; and 

14 (iv) reformulated gasoline containing 

15 renewable fuel; and 

16 (B) submit to Congress, and make publicly 

17 available, a report on the results of the survey 

18 under subparagraph (A). 

19 (2) RECORDKEEPING AND REPORTING RE20 QUIREMENTS.—The Administrator may require any 

21 refiner, blender, or importer to keep such records 

22 and make such reports as are necessary to ensure 

23 that the survey conducted under paragraph (1) is 

24 accurate. The Administrator shall rely, to the extent 
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1 practicable, on existing reporting and recordkeeping 

2 requirements to avoid duplicative requirements. 

3 (3) APPLICABLE LAW.—Activities carried out 

4 under this subsection shall be conducted in a man5 ner designed to protect confidentiality of individual 

6 responses. 

7 (e) RENEWABLE FUELS SAFE HARBOR.—

8 (1) IN GENERAL.—Notwithstanding any other 

9 provision of federal or state law, no renewable fuel, 

10 as defined by this Act, used or intended to be used 

11 as a motor vehicle fuel, nor any motor vehicle fuel 

12 containing such renewable fuel, shall be deemed de13 fective in design or manufacture by virtue of the fact 

14 that it is, or contains, such a renewable fuel, if it 

15 does not violate a control or prohibition imposed by 

16 the Administrator under section 211 of the Clean 

17 Air Act, as amended by this Act, and the manufac18 turer is in compliance with all requests for informa19 tion under section 211(b) of the Clean Air Act, as 

20 amended by this Act. In the event that the safe har21 bor under this section does not apply, the existence 

22 of a design defect or manufacturing defect shall be 

23 determined under otherwise applicable law. 

24 (2) EXCEPTIONS.—This subsection shall not 

25 apply to ethers.
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1 (3) EFFECTIVE DATE.—This subsection shall be 

2 effective as of the date of enactment and shall apply 

3 with respect to all claims filed on or after that date. 

4 SEC. 102. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE 

5 AND BIODIESEL PURCHASING REQUIRE6 MENT. 

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

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

9 the following: 

10 ‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASO11 LINE AND BIODIESEL PURCHASING REQUIRE12 MENT. 

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

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

15 ethanol-blended gasoline is reasonably available at a gen16 erally competitive price, the Federal agency purchases eth17 anol-blended gasoline containing at least 10 percent eth18 anol rather than nonethanol-blended gasoline, for use in 

19 vehicles used by the agency that use gasoline. 

20 ‘‘(b) BIODIESEL.—

21 ‘‘(1) DEFINITION OF BIODIESEL.—In this sub22 section, the term ‘biodiesel’ has the meaning given 

23 the term in section 312(f). 

24 ‘‘(2) REQUIREMENT.—The head of each Fed25 eral agency shall ensure that the Federal agency 
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1 purchases, for use in fueling fleet vehicles that use 

2 diesel fuel used by the Federal agency at the loca3 tion at which fleet vehicles of the Federal agency are 

4 centrally fueled, in areas in which the biodiesel5 blended diesel fuel described in paragraphs (A) and 

6 (B) is available at a generally competitive price—

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

8 the date of enactment of this paragraph, bio9 diesel-blended diesel fuel that contains at least 

10 2 percent biodiesel, rather than nonbiodiesel11 blended diesel fuel; and 

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

13 the date of enactment of this paragraph, bio14 diesel-blended diesel fuel that contains at least 

15 20 percent biodiesel, rather than nonbiodiesel16 blended diesel fuel. 

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

18 provisions of this subsection shall not be considered 

19 a requirement of Federal law for the purposes of 

20 section 312. 

21 ‘‘(c) EXEMPTION.—This section does not apply to 

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

23 by subparagraphs (A) through (H) of section 301(9).’’. 
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1 SEC. 103. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 

2 SOLID WASTE LOAN GUARANTEE PROGRAM. 

3 (a) DEFINITION OF MUNICIPAL SOLID WASTE.—In 

4 this section, the term ‘‘municipal solid waste’’ has the 

5 meaning given the term ‘‘solid waste’’ in section 1004 of 

6 the Solid Waste Disposal Act (42 U.S.C. 6903). 

7 (b) ESTABLISHMENT OF PROGRAM.—The Secretary 

8 of Energy shall establish a program to provide guarantees 

9 of loans by private institutions for the construction of fa10 cilities for the processing and conversion of municipal solid 

11 waste into fuel ethanol and other commercial byproducts. 

12 (c) REQUIREMENTS.—The Secretary may provide a 

13 loan guarantee under subsection (b) to an applicant if—

14 (1) without a loan guarantee, credit is not 

15 available to the applicant under reasonable terms or 

16 conditions sufficient to finance the construction of a 

17 facility described in subsection (b); 

18 (2) the prospective earning power of the appli19 cant and the character and value of the security 

20 pledged provide a reasonable assurance of repayment 

21 of the loan to be guaranteed in accordance with the 

22 terms of the loan; and 

23 (3) the loan bears interest at a rate determined 

24 by the Secretary to be reasonable, taking into ac25 count the current average yield on outstanding obli-
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1 gations of the United States with remaining periods 

2 of maturity comparable to the maturity of the loan. 

3 (d) CRITERIA.—In selecting recipients of loan guar4 antees from among applicants, the Secretary shall give 

5 preference to proposals that—

6 (1) meet all applicable Federal and State per7 mitting requirements; 

8 (2) are most likely to be successful; and 

9 (3) are located in local markets that have the 

10 greatest need for the facility because of—

11 (A) the limited availability of land for 

12 waste disposal; or 

13 (B) a high level of demand for fuel ethanol 

14 or other commercial byproducts of the facility. 

15 (e) MATURITY.—A loan guaranteed under subsection 

16 (b) shall have a maturity of not more than 20 years. 

17 (f) TERMS AND CONDITIONS.—The loan agreement 

18 for a loan guaranteed under subsection (b) shall provide 

19 that no provision of the loan agreement may be amended 

20 or waived without the consent of the Secretary. 

21 (g) ASSURANCE OF REPAYMENT.—The Secretary 

22 shall require that an applicant for a loan guarantee under 

23 subsection (b) provide an assurance of repayment in the 

24 form of a performance bond, insurance, collateral, or other 
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1 means acceptable to the Secretary in an amount equal to 

2 not less than 20 percent of the amount of the loan. 

3 (h) GUARANTEE FEE.—The recipient of a loan guar4 antee under subsection (b) shall pay the Secretary an 

5 amount determined by the Secretary to be sufficient to 

6 cover the administrative costs of the Secretary relating to 

7 the loan guarantee. 

8 (i) FULL FAITH AND CREDIT.—The full faith and 

9 credit of the United States is pledged to the payment of 

10 all guarantees made under this section. Any such guar11 antee made by the Secretary shall be conclusive evidence 

12 of the eligibility of the loan for the guarantee with respect 

13 to principal and interest. The validity of the guarantee 

14 shall be incontestable in the hands of a holder of the guar15 anteed loan. 

16 (j) REPORTS.—Until each guaranteed loan under this 

17 section has been repaid in full, the Secretary shall annu18 ally submit to Congress a report on the activities of the 

19 Secretary under this section. 

20 (k) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated such sums as are nec22 essary to carry out this section. 

23 (l) TERMINATION OF AUTHORITY.—The authority of 

24 the Secretary to issue a loan guarantee under subsection
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1 (b) terminates on the date that is 10 years after the date 

2 of enactment of this Act. 

3 SEC. 104. DATA COLLECTION. 

4 Section 205 of the Department of Energy Organiza5 tion Act (42 U.S.C. 7135) is amended by adding at the 

6 end the following: 

7 ‘‘(m) In order to improve the ability to evaluate the 

8 effectiveness of the Nation’s renewable fuels mandate, the 

9 Administrator shall conduct and publish the results of a 

10 survey of renewable fuels consumption in the motor vehicle 

11 fuels market in the United States monthly, and in a man12 ner designed to protect the confidentiality of individual re13 sponses. In conducting the survey, the Administrator shall 

14 collect information retrospectively to 1998, both on a na15 tional basis and a regional basis, including— 

16 ‘‘(1) the quantity of renewable fuels produced; 

17 ‘‘(2) the cost of production; 

18 ‘‘(3) the cost of blending and marketing; 

19 ‘‘(4) the quantity of renewable fuels blended; 

20 ‘‘(5) the quantity of renewable fuels imported; 

21 and 

22 ‘‘(6) market price data.’’. 
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1 TITLE II—FEDERAL 

2 REFORMULATED FUELS 

3 SEC. 201. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Federal Reformu5 lated Fuels Act of 2002’’. 

6 SEC. 202. LEAKING UNDERGROUND STORAGE TANKS. 

7 (a) USE OF LUST FUNDS FOR REMEDIATION OF

8 CONTAMINATION FROM ETHER FUEL ADDITIVES.—Sec9 tion 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 

10 6991b(h)) is amended—

11 (1) in paragraph (7)(A)—

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

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

14 (2), and (12)’’; and 

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

16 ‘‘if’’; and 

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

18 ‘‘(12) REMEDIATION OF CONTAMINATION FROM

19 ETHER FUEL ADDITIVES.—

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

21 and the States may use funds made available 

22 under section 9013(1) to carry out corrective 

23 actions with respect to a release of methyl ter24 tiary butyl ether or other ether fuel additive 
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•HR 837 IH 

1 that presents a threat to human health, welfare, 

2 or the environment. 

3 ‘‘(B) APPLICABLE AUTHORITY.—Subpara4 graph (A) shall be carried out—

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

6 except that a release with respect to which 

7 a corrective action is carried out under 

8 subparagraph (A) shall not be required to 

9 be from an underground storage tank; and 

10 ‘‘(ii) in the case of a State, in accord11 ance with a cooperative agreement entered 

12 into by the Administrator and the State 

13 under paragraph (7).’’. 

14 (b) RELEASE PREVENTION AND COMPLIANCE.—Sub15 title I of the Solid Waste Disposal Act (42 U.S.C. 6991 

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

17 the following: 

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

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

20 the Leaking Underground Storage Tank Trust Fund may 

21 be used for conducting inspections, or for issuing orders 

22 or bringing actions under this subtitle—

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

24 9003(h)(7)) acting under—
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•HR 837 IH 

1 ‘‘(A) a program approved under section 

2 9004; or 

3 ‘‘(B) State requirements regulating under4 ground storage tanks that are similar or iden5 tical to this subtitle, as determined by the Ad6 ministrator; and 

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

8 subtitle or a State program approved under section 

9 9004. 

10 ‘‘SEC. 9011. BEDROCK BIOREMEDIATION. 

11 ‘‘The Administrator shall establish, at an institution 

12 of higher education (as defined in section 101 of the High13 er Education Act of 1965 (20 U.S.C. 1001)) with estab14 lished expertise in bioremediation of contaminated bedrock 

15 aquifers, a resource center—

16 ‘‘(1) to conduct research concerning bioremedi17 ation of methyl tertiary butyl ether in contaminated 

18 underground aquifers, including contaminated bed19 rock; and 

20 ‘‘(2) to provide for States a technical assistance 

21 clearinghouse for information concerning innovative 

22 technologies for bioremediation described in para23 graph (1). 
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•HR 837 IH 

1 ‘‘SEC. 9012. SOIL REMEDIATION. 

2 ‘‘The Administrator may establish a program to con3 duct research concerning remediation of methyl tertiary 

4 butyl ether contamination of soil, including granitic or vol5 canic soil. 

6 ‘‘SEC. 9013. AUTHORIZATION OF APPROPRIATIONS. 

7 ‘‘In addition to amounts made available under section 

8 2007(f), there are authorized to be appropriated from the 

9 Leaking Underground Storage Tank Trust Fund, notwith10 standing section 9508(c)(1) of the Internal Revenue Code 

11 of 1986—

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

13 $200,000,000 for fiscal year 2003, to remain avail14 able until expended; 

15 ‘‘(2) to carry out section 9010—

16 ‘‘(A) $50,000,000 for fiscal year 2003; and 

17 ‘‘(B) $30,000,000 for each of fiscal years 

18 2004 through 2008; 

19 ‘‘(3) to carry out section 9011—

20 ‘‘(A) $500,000 for fiscal year 2003; and 

21 ‘‘(B) $300,000 for each of fiscal years 

22 2004 through 2008; and 

23 ‘‘(4) to carry out section 9012—

24 ‘‘(A) $100,000 for fiscal year 2003; and 

25 ‘‘(B) $50,000 for each of fiscal years 2004 

26 through 2008.’’.
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•HR 837 IH 

1 (c) TECHNICAL AMENDMENTS.—(1) Section 1001 of 

2 the Solid Waste Disposal Act (42 U.S.C. prec. 6901) is 

3 amended by striking the item relating to section 9010 and 

4 inserting the following:

‘‘Sec. 9010. Release prevention and compliance. 

‘‘Sec. 9011. Bedrock bioremediation. 

‘‘Sec. 9012. Soil remediation. 

‘‘Sec. 9013. Authorization of appropriations.’’.

5 (2) Section 9001(3)(A) of the Solid Waste Disposal 

6 Act (42 U.S.C. 6991(3)(A)) is amended by striking 

7 ‘‘sustances’’ and inserting ‘‘substances’’. 

8 (3) Section 9003(f)(1) of the Solid Waste Disposal 

9 Act (42 U.S.C. 6991b(f)(1)) is amended by striking ‘‘sub10 section (c) and (d) of this section’’ and inserting ‘‘sub11 sections (c) and (d)’’. 

12 (4) Section 9004(a) of the Solid Waste Disposal Act 

13 (42 U.S.C. 6991c(a)) is amended in the second sentence 

14 by striking ‘‘referred to’’ and all that follows and inserting 

15 ‘‘referred to in subparagraph (A) or (B), or both, of sec16 tion 9001(2).’’. 

17 (5) Section 9005 of the Solid Waste Disposal Act (42 

18 U.S.C. 6991d) is amended—

19 (A) in subsection (a), by striking ‘‘study tak20 ing’’ and inserting ‘‘study, taking’’; 

21 (B) in subsection (b)(1), by striking ‘‘relevent’’ 

22 and inserting ‘‘relevant’’; and 
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•HR 837 IH 

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

2 ‘‘Evironmental’’ and inserting ‘‘Environmental’’. 

3 SEC. 203. AUTHORITY FOR WATER QUALITY PROTECTION 

4 FROM FUELS. 

5 (a) FINDINGS.—Congress finds that—

6 (1) since 1979, methyl tertiary butyl ether (re7 ferred to in this section as ‘‘MTBE’’) has been used 

8 nationwide at low levels in gasoline to replace lead 

9 as an octane booster or anti-knocking agent; 

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

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

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

13 standard under which reformulated gasoline must 

14 contain at least 2 percent oxygen by weight; 

15 (3) at the time of the adoption of the fuel oxy16 gen standard, Congress was aware that significant 

17 use of MTBE could result from the adoption of that 

18 standard, and that the use of MTBE would likely be 

19 important to the cost-effective implementation of 

20 that program; 

21 (4) Congress is aware that gasoline and its 

22 component additives have leaked from storage tanks, 

23 with consequences for water quality; 
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•HR 837 IH 

1 (5) the fuel industry responded to the fuel oxy2 genate standard established by Public Law 101–549 

3 by making substantial investments in—

4 (A) MTBE production capacity; and 

5 (B) systems to deliver MTBE-containing 

6 gasoline to the marketplace; 

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

8 MTBE may cause serious problems of drinking 

9 water quality; 

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

11 water sources throughout the United States; 

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

13 at low concentrations; 

14 (9) while small quantities of MTBE can render 

15 water supplies unpalatable, the precise human health 

16 effects of MTBE consumption at low levels are yet 

17 unknown; 

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

19 and Clean Water: The Report of the Blue Ribbon 

20 Panel on Oxygenates in Gasoline’’ and dated Sep21 tember 1999, Congress was urged—

22 (A) to eliminate the fuel oxygenate stand23 ard; 

24 (B) to greatly reduce use of MTBE; and 
33

•HR 837 IH 

1 (C) to maintain the environmental per2 formance of reformulated gasoline; 

3 (11) Congress has—

4 (A) reconsidered the relative value of 

5 MTBE in gasoline; and 

6 (B) decided to eliminate use of MTBE as 

7 a fuel additive; 

8 (12) the timeline for elimination of use of 

9 MTBE as a fuel additive must be established in a 

10 manner that achieves an appropriate balance among 

11 the goals of—

12 (A) environmental protection; 

13 (B) adequate energy supply; and 

14 (C) reasonable fuel prices; and 

15 (13) it is appropriate for Congress to provide 

16 some limited transition assistance—

17 (A) to merchant producers of MTBE who 

18 produced MTBE in response to a market cre19 ated by the oxygenate requirement contained in 

20 the Clean Air Act; and 

21 (B) for the purpose of mitigating any fuel 

22 supply problems that may result from elimi23 nation of a widely-used fuel additive. 

24 (b) PURPOSES.—The purposes of this section are—
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•HR 837 IH 

1 (1) to eliminate use of MTBE as a fuel oxygen2 ate; and 

3 (2) to provide assistance to merchant producers 

4 of MTBE in making the transition from producing 

5 MTBE to producing other fuel additives. 

6 (c) AUTHORITY FOR WATER QUALITY PROTECTION

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

8 U.S.C. 7545(c)) is amended—

9 (1) in paragraph (1)(A)—

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

11 after ‘‘Administrator any’’; and 

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

13 inserting ‘‘air pollution, or water pollution, 

14 that’’; 

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

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

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

18 ‘‘(5) PROHIBITION ON USE OF MTBE.—

19 ‘‘(A) IN GENERAL.—Subject to subpara20 graph (E), not later than 4 years after the date 

21 of enactment of this paragraph, the use of 

22 methyl tertiary butyl ether in motor vehicle fuel 

23 in any State other than a State described in 

24 subparagraph (C) is prohibited.
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•HR 837 IH 

1 ‘‘(B) REGULATIONS.—The Administrator 

2 shall promulgate regulations to effect the prohi3 bition in subparagraph (A). 

4 ‘‘(C) STATES THAT AUTHORIZE USE.—A 

5 State described in this subparagraph is a State 

6 that submits to the Administrator a notice that 

7 the State authorizes use of methyl tertiary 

8 butyl ether in motor vehicle fuel sold or used in 

9 the State. 

10 ‘‘(D) PUBLICATION OF NOTICE.—The Ad11 ministrator shall publish in the Federal Reg12 ister each notice submitted by a State under 

13 subparagraph (C). 

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

15 subparagraph (A), the Administrator may allow 

16 trace quantities of methyl tertiary butyl ether, 

17 not to exceed 0.5 percent by volume, to be 

18 present in motor vehicle fuel in cases that the 

19 Administrator determines to be appropriate. 

20 ‘‘(6) MTBE MERCHANT PRODUCER CONVER21 SION ASSISTANCE.—

22 ‘‘(A) IN GENERAL.—

23 ‘‘(i) GRANTS.—The Secretary of En24 ergy, in consultation with the Adminis25 trator, may make grants to merchant pro-
36

•HR 837 IH 

1 ducers of methyl tertiary butyl ether in the 

2 United States to assist the producers in 

3 the conversion of eligible production facili4 ties described in subparagraph (C) to the 

5 production of iso-octane and alkylates. 

6 ‘‘(ii) DETERMINATION.—The Admin7 istrator, in consultation with the Secretary 

8 of Energy, may determine that transition 

9 assistance for the production of iso-octane 

10 and alkylates is inconsistent with the pro11 visions of subparagraph (B) and, on that 

12 basis, may deny applications for grants au13 thorized by this provision. 

14 ‘‘(B) FURTHER GRANTS.—The Secretary 

15 of Energy, in consultation with the Adminis16 trator, may also further make grants to mer17 chant producers of MTBE in the United States 

18 to assist the producers in the conversion of eli19 gible production facilities described in subpara20 graph (C) to the production of such other fuel 

21 additives that, consistent with 211(c)—

22 ‘‘(i) unless the Administrator deter23 mines that such fuel additives may reason24 ably be anticipated to endanger public 

25 health or the environment; 
37

•HR 837 IH 

1 ‘‘(ii) have been registered and have 

2 been tested or are being tested in accord3 ance with the requirements of this section; 

4 and 

5 ‘‘(iii) will contribute to replacing gaso6 line volumes lost as a result of paragraph 

7 (5). 

8 ‘‘(C) ELIGIBLE PRODUCTION FACILI9 TIES.—A production facility shall be eligible to 

10 receive a grant under this paragraph if the pro11 duction facility—

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

13 and 

14 ‘‘(ii) produced methyl tertiary butyl 

15 ether for consumption in nonattainment 

16 areas during the period—

17 ‘‘(I) beginning on the date of en18 actment of this paragraph; and 

19 ‘‘(II) ending on the effective date 

20 of the prohibition on the use of methyl 

21 tertiary butyl ether under paragraph 

22 (5). 

23 ‘‘(D) AUTHORIZATION OF APPROPRIA24 TIONS.—There is authorized to be appropriated 
38

•HR 837 IH 

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

2 each of fiscal years 2003 through 2005.’’. 

3 (d) NO EFFECT ON LAW CONCERNING STATE AU4 THORITY.—The amendments made by subsection (c) have 

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

6 of enactment of this Act regarding the authority of States 

7 to limit the use of methyl tertiary butyl ether in motor 

8 vehicle fuel. 

9 SEC. 204. ELIMINATION OF OXYGEN CONTENT REQUIRE10 MENT FOR REFORMULATED GASOLINE. 

11 (a) ELIMINATION.—

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

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

14 (A) in paragraph (2)—

15 (i) in the second sentence of subpara16 graph (A), by striking ‘‘(including the oxy17 gen content requirement contained in sub18 paragraph (B))’’; 

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

20 (iii) by redesignating subparagraphs 

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

22 (C), respectively; 

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

24 (v); 

25 (C) in paragraph (7)—
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•HR 837 IH 

1 (i) in subparagraph (A)—

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

3 (II) by redesignating clauses (ii) 

4 and (iii) as clauses (i) and (ii), respec5 tively; and 

6 (ii) in subparagraph (C)—

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

8 (II) by redesignating clause (iii) 

9 as clause (ii); and 

10 (2) EFFECTIVE DATE.—The amendments made 

11 by paragraph (1) take effect 270 days after the date 

12 of enactment of this Act, except that such amend13 ments shall take effect upon enactment in any State 

14 that has received a waiver under section 209(b) of 

15 the Clean Air Act. 

16 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS17 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

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

19 (1) by striking ‘‘Within 1 year after the enact20 ment of the Clean Air Act Amendments of 1990,’’ 

21 and inserting the following: 

22 ‘‘(A) IN GENERAL.—Not later than No23 vember 15, 1991,’’; and 

24 (2) by adding at the end the following:
40

•HR 837 IH 

1 ‘‘(B) MAINTENANCE OF TOXIC AIR POL2 LUTANT EMISSIONS REDUCTIONS FROM REFOR3 MULATED GASOLINE.—

4 ‘‘(i) DEFINITIONS.—In this subpara5 graph the term ‘PADD’ means a Petro6 leum Administration for Defense District. 

7 ‘‘(ii) REGULATIONS REGARDING EMIS8 SIONS OF TOXIC AIR POLLUTANTS.—Not 

9 later than 270 days after the date of en10 actment of this subparagraph, the Admin11 istrator shall establish, for each refinery or 

12 importer (other than a refinery or importer 

13 in a State that has received a waiver under 

14 section 209(b) with regard to gasoline pro15 duced for use in that state), standards for 

16 toxic air pollutants from use of the refor17 mulated gasoline produced or distributed 

18 by the refinery or importer that maintain 

19 the reduction of the average annual aggre20 gate emissions of toxic air pollutants for 

21 reformulated gasoline produced or distrib22 uted by the refinery or importer during 

23 calendar years 1999 and 2000, determined 

24 on the basis of data collected by the Ad-
41

•HR 837 IH 

1 ministrator with respect to the refinery or 

2 importer. 

3 ‘‘(iii) STANDARDS APPLICABLE TO

4 SPECIFIC REFINERIES OR IMPORTERS.—

5 ‘‘(I) APPLICABILITY OF STAND6 ARDS.—For any calendar year, the 

7 standards applicable to a refinery or 

8 importer under clause (ii) shall apply 

9 to the quantity of gasoline produced 

10 or distributed by the refinery or im11 porter in the calendar year only to the 

12 extent that the quantity is less than 

13 or equal to the average annual quan14 tity of reformulated gasoline produced 

15 or distributed by the refinery or im16 porter during calendar years 1999 

17 and 2000. 

18 ‘‘(II) APPLICABILITY OF OTHER

19 STANDARDS.—For any calendar year, 

20 the quantity of gasoline produced or 

21 distributed by a refinery or importer 

22 that is in excess of the quantity sub23 ject to subclause (I) shall be subject 

24 to standards for toxic air pollutants 
42

•HR 837 IH 

1 promulgated under subparagraph (A) 

2 and paragraph (3)(B). 

3 ‘‘(iv) CREDIT PROGRAM.—The Admin4 istrator shall provide for the granting and 

5 use of credits for emissions of toxic air pol6 lutants in the same manner as provided in 

7 paragraph (7). 

8 ‘‘(v) REGIONAL PROTECTION OF

9 TOXICS REDUCTION BASELINES.—

10 ‘‘(I) IN GENERAL.—Not later 

11 than 60 days after the date of enact12 ment of this subparagraph, and not 

13 later than April 1 of each calendar 

14 year that begins after that date of en15 actment, the Administrator shall pub16 lish in the Federal Register a report 

17 that specifies, with respect to the pre18 vious calendar year—

19 ‘‘(aa) the quantity of refor20 mulated gasoline produced that is 

21 in excess of the average annual 

22 quantity of reformulated gasoline 

23 produced in 1999 and 2000; and 

24 ‘‘(bb) the reduction of the 

25 average annual aggregate emis-
43

•HR 837 IH 

1 sions of toxic air pollutants in 

2 each PADD, based on retail sur3 vey data or data from other ap4 propriate sources. 

5 ‘‘(II) EFFECT OF FAILURE TO

6 MAINTAIN AGGREGATE TOXICS RE7 DUCTIONS.—If, in any calendar year, 

8 the reduction of the average annual 

9 aggregate emissions of toxic air pol10 lutants in a PADD fails to meet or 

11 exceed the reduction of the average 

12 annual aggregate emissions of toxic 

13 air pollutants in the PADD in cal14 endar years 1999 and 2000, the Ad15 ministrator, not later than 90 days 

16 after the date of publication of the re17 port for the calendar year under sub18 clause (I), shall—

19 ‘‘(aa) identify, to the max20 imum extent practicable, the rea21 sons for the failure, including the 

22 sources, volumes, and character23 istics of reformulated gasoline 

24 that contributed to the failure; 

25 and 
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•HR 837 IH 

1 ‘‘(bb) promulgate revisions 

2 to the regulations promulgated 

3 under clause (ii), to take effect 

4 not earlier than 180 days but not 

5 later than 270 days after the 

6 date of promulgation, to provide 

7 that, notwithstanding clause 

8 (iii)(II), all reformulated gasoline 

9 produced or distributed at each 

10 refinery or importer shall meet 

11 the standards applicable under 

12 clause (iii) not later than April 1 

13 of the year following the report 

14 in subclause (II) and for subse15 quent years. 

16 ‘‘(vi) REGULATIONS TO CONTROL

17 HAZARDOUS AIR POLLUTANTS FROM

18 MOTOR VEHICLES AND MOTOR VEHICLE

19 FUELS.—Not later than July 1, 2004, the 

20 Administrator shall promulgate final regu21 lations to control hazardous air pollutants 

22 from motor vehicles and motor vehicle 

23 fuels, as provided for in section 80.1045 of 

24 title 40, Code of Federal Regulations (as
45

•HR 837 IH 

1 in effect on the date of enactment of this 

2 subparagraph).’’. 

3 (c) CONSOLIDATION IN REFORMULATED GASOLINE

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

5 of enactment of this Act, the Administrator shall revise 

6 the reformulated gasoline regulations under subpart D of 

7 part 80 of title 40, Code of Federal Regulations, to con8 solidate the regulations applicable to VOC-Control Re9 gions 1 and 2 under section 80.41 of that title by elimi10 nating the less stringent requirements applicable to gaso11 line designated for VOC-Control Region 2 and instead ap12 plying the more stringent requirements applicable to gaso13 line designated for VOC-Control Region 1. 

14 (d) SAVINGS CLAUSE.—Nothing in this section is in15 tended to affect or prejudice any legal claims or actions 

16 with respect to regulations promulgated by the Adminis17 trator prior to enactment of this Act regarding emissions 

18 of toxic air pollutants from motor vehicles. 

19 (e) DETERMINATION REGARDING A STATE PETI20 TION.—Section 211(k) of the Clean Air Act (42 U.S.C. 

21 7545(k)) is amended by inserting after paragraph (10) the 

22 following: 

23 ‘‘(11) DETERMINATION REGARDING A STATE

24 PETITION.—
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•HR 837 IH 

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

2 other provision of this section, not less than 30 

3 days after enactment of this paragraph the Ad4 ministrator must determine the adequacy of any 

5 petition received from a Governor of a State to 

6 exempt gasoline sold in that State from the re7 quirements of paragraph (2)(B). 

8 ‘‘(B) APPROVAL.—If the determination in 

9 (A) is not made within thirty days of enactment 

10 of this paragraph, the petition shall be deemed 

11 approved.’’. 

12 SEC. 205. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS 

13 OF FUELS AND FUEL ADDITIVES. 

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

15 7545(b)) is amended—

16 (1) in paragraph (2)—

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

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

19 (B) by striking subparagraph (A) and in20 serting the following: 

21 ‘‘(A) to conduct tests to determine poten22 tial public health and environmental effects of 

23 the fuel or additive (including carcinogenic, 

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

25 (2) by adding at the end the following: 
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•HR 837 IH 

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

2 BLENDSTOCKS.—

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

4 after the date of enactment of this paragraph, 

5 the Administrator shall—

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

7 public health, air quality, and water re8 sources of increased use of, and the feasi9 bility of using as substitutes for methyl 

10 tertiary butyl ether in gasoline—

11 ‘‘(I) ethyl tertiary butyl ether; 

12 ‘‘(II) tertiary amyl methyl ether; 

13 ‘‘(III) di-isopropyl ether; 

14 ‘‘(IV) tertiary butyl alcohol; 

15 ‘‘(V) other ethers and heavy alco16 hols, as determined by then Adminis17 trator; 

18 ‘‘(VI) ethanol; 

19 ‘‘(VII) iso-octane; and 

20 ‘‘(VIII) alkylates; 

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

22 public health, air quality, and water re23 sources of the adjustment for ethanol24 blended reformulated gasoline to the VOC 

25 performance requirements otherwise appli-
48

•HR 837 IH 

1 cable under sections 211(k)(1) and 

2 211(k)(3) of the Clean Air Act; and 

3 ‘‘(iii) submit to the Committee on En4 vironment and Public Works of the Senate 

5 and the Committee on Energy and Com6 merce of the House of Representatives a 

7 report describing the results of these stud8 ies. 

9 ‘‘(B) CONTRACTS FOR STUDY.—In car10 rying out this paragraph, the Administrator 

11 may enter into one or more contracts with non12 governmental entities including but not limited 

13 to National Energy Laboratories and institu14 tions of higher education (as defined in section 

15 101 of the Higher Education Act of 1965 (20 

16 U.S.C. 1001)).’’. 

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

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

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

20 after subsection (o) the following: 

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

22 AND EMISSIONS MODEL.—

23 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

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

25 years after the date of enactment of this para-
49

•HR 837 IH 

1 graph, the Administrator shall publish for pub2 lic comment a draft analysis of the changes in 

3 emissions of air pollutants and air quality due 

4 to the use of motor vehicle fuel and fuel addi5 tives resulting from implementation of the 

6 amendments made by the Federal Reformulated 

7 Fuels Act of 2002. 

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

9 reasonable opportunity for comment but not 

10 later than 5 years after the date of enactment 

11 of this paragraph, the Administrator shall pub12 lish the analysis in final form. 

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

14 this subsection, as soon as the necessary data are 

15 available, the Administrator shall develop and final16 ize an emissions model that reasonably reflects the 

17 effects of gasoline characteristics or components on 

18 emissions from vehicles in the motor vehicle fleet 

19 during calendar year 2005.’’. 

20 SEC. 207. ADDITIONAL OPT-IN AREAS UNDER REFORMU21 LATED GASOLINE PROGRAM. 

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

23 7545(k)(6)) is amended—

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

25 Upon’’ and inserting the following:
50

•HR 837 IH 

1 ‘‘(6) OPT-IN AREAS.—

2 ‘‘(A) CLASSIFIED AREAS.—

3 ‘‘(i) IN GENERAL.—Upon’’; 

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

5 and inserting the following: 

6 ‘‘(ii) EFFECT OF INSUFFICIENT DO7 MESTIC CAPACITY TO PRODUCE REFORMU8 LATED GASOLINE.—If’’; 

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

10 paragraph (2))—

11 (A) in the first sentence, by striking ‘‘sub12 paragraph (A)’’ and inserting ‘‘clause (i)’’; and 

13 (B) in the second sentence, by striking 

14 ‘‘this paragraph’’ and inserting ‘‘this subpara15 graph’’; and 

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

17 ‘‘(B) OZONE TRANSPORT REGION.—

18 ‘‘(i) APPLICATION OF PROHIBITION.—

19 ‘‘(I) IN GENERAL.—In addition 

20 to the provisions of subparagraph (A), 

21 upon the application of the Governor 

22 of a State in the ozone transport re23 gion established by section 184(a), the 

24 Administrator, not later than 180 

25 days after the date of receipt of the 
51

•HR 837 IH 

1 application, shall apply the prohibition 

2 specified in paragraph (5) to any area 

3 in the State (other than an area clas4 sified as a marginal, moderate, seri5 ous, or severe ozone nonattainment 

6 area under subpart 2 of part D of 

7 title I) unless the Administrator deter8 mines under clause (iii) that there is 

9 insufficient capacity to supply refor10 mulated gasoline. 

11 ‘‘(II) PUBLICATION OF APPLICA12 TION.—As soon as practicable after 

13 the date of receipt of an application 

14 under subclause (I), the Adminis15 trator shall publish the application in 

16 the Federal Register. 

17 ‘‘(ii) PERIOD OF APPLICABILITY.—

18 Under clause (i), the prohibition specified 

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

20 ‘‘(I) commencing as soon as prac21 ticable but not later than 2 years 

22 after the date of approval by the Ad23 ministrator of the application of the 

24 Governor of the State; and 
52

•HR 837 IH 

1 ‘‘(II) ending not earlier than 4 

2 years after the commencement date 

3 determined under subclause (I). 

4 ‘‘(iii) EXTENSION OF COMMENCEMENT

5 DATE BASED ON INSUFFICIENT CAPAC6 ITY.—

7 ‘‘(I) IN GENERAL.—If, after re8 ceipt of an application from a Gov9 ernor of a State under clause (i), the 

10 Administrator determines, on the Ad11 ministrator’s own motion or on peti12 tion of any person, after consultation 

13 with the Secretary of Energy, that 

14 there is insufficient capacity to supply 

15 reformulated gasoline, the Adminis16 trator, by regulation—

17 ‘‘(aa) shall extend the com18 mencement date with respect to 

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

20 not more than 1 year; and 

21 ‘‘(bb) may renew the exten22 sion under item (aa) for two ad23 ditional periods, each of which 

24 shall not exceed 1 year. 
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1 ‘‘(II) DEADLINE FOR ACTION ON

2 PETITIONS.—The Administrator shall 

3 act on any petition submitted under 

4 subclause (I) not later than 180 days 

5 after the date of receipt of the peti6 tion.’’. 

7 SEC. 208. FEDERAL ENFORCEMENT OF STATE FUELS RE8 QUIREMENTS. 

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

10 7545(c)(4)(C)) is amended—

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

12 following: 

13 ‘‘(C) AUTHORITY OF STATE TO CONTROL

14 FUELS AND FUEL ADDITIVES FOR REASONS OF

15 NECESSITY.—

16 ‘‘(i) IN GENERAL.—A State’’; and 

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

18 ‘‘(ii) ENFORCEMENT BY THE ADMIN19 ISTRATOR.—In any case in which a State 

20 prescribes and enforces a control or prohi21 bition under clause (i), the Administrator, 

22 at the request of the State, shall enforce 

23 the control or prohibition as if the control 

24 or prohibition had been adopted under the 

25 other provisions of this section.’’.
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1 SEC. 209. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

2 STUDY. 

3 (a) STUDY.—

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

5 Environmental Protection Agency and the Secretary 

6 of Energy shall jointly conduct a study of Federal, 

7 State, and local requirements concerning motor vehi8 cle fuels, including—

9 (A) requirements relating to reformulated 

10 gasoline, volatility (measured in Reid vapor 

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

12 (B) other requirements that vary from 

13 State to State, region to region, or locality to 

14 locality. 

15 (2) REQUIRED ELEMENTS.—The study shall as16 sess—

17 (A) the effect of the variety of require18 ments described in paragraph (1) on the supply, 

19 quality, and price of motor vehicle fuels avail20 able to the consumer; 

21 (B) the effect of the requirements de22 scribed in paragraph (1) on achievement of—

23 (i) national, regional, and local air 

24 quality standards and goals; and 

25 (ii) related environmental and public 

26 health protection standards and goals; 
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1 (C) the effect of Federal, State, and local 

2 motor vehicle fuel regulations, including mul3 tiple motor vehicle fuel requirements, on—

4 (i) domestic refineries; 

5 (ii) the fuel distribution system; and 

6 (iii) industry investment in new capac7 ity; 

8 (D) the effect of the requirements de9 scribed in paragraph (1) on emissions from ve10 hicles, refineries, and fuel handling facilities; 

11 (E) the feasibility of developing national or 

12 regional motor vehicle fuel slates for the 48 

13 contiguous States that, while protecting and im14 proving air quality at the national, regional, 

15 and local levels, could—

16 (i) enhance flexibility in the fuel dis17 tribution infrastructure and improve fuel 

18 fungibility; 

19 (ii) reduce price volatility and costs to 

20 consumers and producers; 

21 (iii) provide increased liquidity to the 

22 gasoline market; and 

23 (iv) enhance fuel quality, consistency, 

24 and supply; and 
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1 (F) the feasibility of providing incentives, 

2 and the need for the development of national 

3 standards necessary, to promote cleaner burn4 ing motor vehicle fuel. 

5 (b) REPORT.—

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

7 2006, the Administrator of the Environmental Pro8 tection Agency and the Secretary of Energy shall 

9 submit to Congress a report on the results of the 

10 study conducted under subsection (a). 

11 (2) RECOMMENDATIONS.—

12 (A) IN GENERAL.—The report shall con13 tain recommendations for legislative and admin14 istrative actions that may be taken—

15 (i) to improve air quality; 

16 (ii) to reduce costs to consumers and 

17 producers; and 

18 (iii) to increase supply liquidity. 

19 (B) REQUIRED CONSIDERATIONS.—The 

20 recommendations under subparagraph (A) shall 

21 take into account the need to provide advance 

22 notice of required modifications to refinery and 

23 fuel distribution systems in order to ensure an 

24 adequate supply of motor vehicle fuel in all 

25 States. 
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1 (3) CONSULTATION.—In developing the report, 

2 the Administrator of the Environmental Protection 

3 Agency and the Secretary of Energy shall consult 

4 with—

5 (A) the Governors of the States; 

6 (B) automobile manufacturers; 

7 (C) motor vehicle fuel producers and dis8 tributors; and 

9 (D) the public. 

10 SEC. 210. REVIEW OF FEDERAL PROCUREMENT INITIA11 TIVES RELATING TO USE OF RECYCLED 

12 PRODUCTS AND FLEET AND TRANSPOR13 TATION EFFICIENCY. 

14 Not later than 180 days after the date of enactment 

15 of this Act, the Administrator of General Services shall 

16 submit to Congress a report that details efforts by each 

17 Federal agency to implement the procurement policies 

18 specified in Executive Order No. 13101 (63 Fed. Reg. 

19 49643; relating to governmental use of recycled products) 

20 and Executive Order No. 13149 (65 Fed. Reg. 24607; re21 lating to Federal fleet and transportation efficiency).

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