Next Generation Fuels Act of 2020

To promote low-carbon, high-octane fuels, to protect public health, and to improve vehicle efficiency and performance, and for other purposes. 1. Short title This Act may be cited as the Next Generation Fuels Act of 2020 2. Table of contents The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—Low-carbon high-octane fuels Sec. 101. High-octane certification fuel. Sec. 102. Clean octane standard. Title II—Regulatory harmonization Sec. 201. Reid vapor pressure. Sec. 202. Fuel economy adjustment. Sec. 203. E30. Sec. 204. Replacement of motor vehicle emissions simulator (MOVES) model. Title III—Infrastructure Sec. 301. High-efficiency vehicles. Sec. 302. Performance standards for new e30 infrastructure. Sec. 303. CAFE and GHG credit generation. I Low-carbon high-octane fuels 101. High-octane certification fuel (a) In general Not later than January 1, 2022, the Administrator of the Environmental Protection Agency shall take such actions as are necessary to allow the use of a certification test fuel described in subsection (b) for purposes of— (1) testing and certification under section 206(a) of the Clean Air Act ( 42 U.S.C. 7525(a) (2) testing and calculation procedures under section 32904(c) of title 49, United States Code, with respect to such motor vehicles. (b) Certification test fuel described A certification test fuel referred to in subsection (a) shall— (1) have a research octane number of 98; and (2) be blended by adding sources of octane value that meet the requirements of subsection (c) to the low-level ethanol-gasoline blend test fuel used to certify model year 2020 light-duty vehicles. (c) Low-Carbon requirement In carrying out subsection (a), the Administrator of the Environmental Protection Agency shall ensure that the sources of octane value for the certification test fuel allowed under subsection (a) have average lifecycle greenhouse gas emissions, as determined by the Secretary of Energy using the version of the Argonne National Laboratory Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET) model in effect as of the date of enactment of this Act, that are at least 30 percent less than the baseline lifecycle greenhouse gas emissions. (d) Definitions In this section: (1) Baseline lifecycle greenhouse gas emissions The term baseline lifecycle greenhouse gas emissions (2) Lifecycle greenhouse gas emissions The term lifecycle greenhouse gas emissions (3) Light-duty vehicle The term light-duty vehicle 42 U.S.C. 7550 (4) Research octane number The term research octane number 102. Clean octane standard (a) Requirements Section 211 of the Clean Air Act ( 42 U.S.C. 7545 (1) in subsection (d)(1), by striking or (o) (o), or (w) (2) in subsection (d)(2), by striking or (o) (o), or (w) (3) by inserting at the end the following: (w) Clean octane standard (1) Aromatics (A) Annual average limitation Effective January 1, 2023, no refiner or importer shall sell motor vehicle gasoline that contains, on an average annual basis, an aromatic hydrocarbon content in excess of 17.5 percent. (B) Cap Effective January 1, 2023, no person shall sell motor vehicle gasoline that contains an aromatic hydrocarbon content in excess of 17.5 percent. (C) Regulations (i) Promulgation The Administrator of the Environmental Protection Agency shall promulgate regulations to implement this paragraph. Not later than January 1, 2023, the Administrator shall promulgate final regulations under the preceding sentence. (ii) Tradeable credits The regulations to implement this paragraph shall— (I) allow for the generation of tradeable credits to meet the requirement of subparagraph (A); and (II) provide that any such credits shall expire after not more than 5 years. (2) Clean octane (A) Prohibition Effective January 1, 2023, no refiner or importer shall introduce any source of octane value into motor vehicle gasoline with a research octane number of 98 or higher unless such source of octane value has average lifecycle greenhouse gas emissions, as determined by the Secretary of Energy using the version of the Argonne National Laboratory Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET) model in effect as of the date of enactment of the Next Generation Fuels Act of 2020 (B) Regulations (i) Promulgation The Administrator of the Environmental Protection Agency shall promulgate regulations to implement this paragraph. Not later than January 1, 2023, the Administrator shall promulgate final regulations under the preceding sentence. (ii) Contents The regulations to implement this paragraph shall— (I) determine the baseline lifecycle greenhouse gas emissions for purposes of this paragraph; (II) determine the average lifecycle greenhouse gas emissions of sources of octane value for purposes of this paragraph; and (III) ensure that the requirements of this paragraph are met. (3) Definitions In this subsection, the terms baseline lifecycle greenhouse gas emissions lifecycle greenhouse gas emissions research octane number Next Generation Fuels Act of 2020 . (b) Reformulated gasoline Clause (ii) of section 211(k)(3)(A) of the Clean Air Act is ( 42 U.S.C. 7545(k)(3)(A) (ii) Aromatics The aromatic hydrocarbon content of the reformulated gasoline— (I) shall not exceed 25 percent by volume; and (II) beginning January 1, 2023, shall not exceed 17.5 percent by volume. . II Regulatory harmonization 201. Reid vapor pressure (a) Reid vapor pressure limitation Section 211(h) of the Clean Air Act ( 42 U.S.C. 7545(h) (1) in paragraph (4)— (A) in the matter preceding subparagraph (A), by inserting or more 10 percent (B) in subparagraph (C), by striking additional alcohol or (2) in paragraph (5)(A), by inserting or more 10 percent (b) Existing waivers Section 211(f)(4) of the Clean Air Act ( 42 U.S.C. 7545(f)(4) (1) by striking The Administrator, upon (A) The Administrator, upon (2) by adding at the end the following: (B) A fuel or fuel additive with respect to which a waiver has been granted in accordance with subparagraph (A) prior to January 1, 2019, and that meets all of the conditions of that waiver, other than the waiver’s limits for Reid vapor pressure, may be introduced into commerce if the fuel or fuel additive meets all other applicable Reid vapor pressure requirements. . 202. Fuel economy adjustment For purposes of fuel economy testing and calculation procedures under section 32904(c) of title 49, United States Code, the fuel economy of motor vehicles using a certification test fuel allowed under section 101 of this Act shall be determined on an energy-equivalent basis, calculated by multiplying fuel economy (as measured under such section 32904(c) without regard to this section) by the ratio of— (1) 114,086 British thermal units per gallon; divided by (2) the volumetric energy density of such test fuel. 203. E30 Section 211(f)(4) of the Clean Air Act ( 42 U.S.C. 7545(f)(4) (C) Beginning January 1, 2022, a fuel with a concentration of ethanol that is more than 15 percent and not more than 30 percent, shall be deemed to have received a waiver in accordance with subparagraph (A). . 204. Replacement of motor vehicle emissions simulator (MOVES) model Section 211(q)(2) of the Clean Air Act ( 42 U.S.C. 7545 (1) by striking For purposes of this section (A) Initial model For purposes of this section ; and (2) by adding at the end of the following: (B) New model Not later than 24 months after the date of enactment of the Next Generation Fuels Act of 2020 (C) Definition For purposes of subparagraph (B), the term appropriate test fuels and methods . III Infrastructure 301. High-efficiency vehicles (a) In general Part A of title II of the Clean Air Act ( 42 U.S.C. 7521 220. Octane specification (a) Applicability This section applies with respect to any motor vehicle (other than a motorcycle) that is introduced into commerce that— (1) is a light-duty vehicle or light-duty truck; (2) is a model year 2024 or later motor vehicle; and (3) uses gasoline for propulsion or any other operation of the motor vehicle, including the engine thereof. (b) Warranty requirements The manufacturer of a motor vehicle described in subsection (a) shall warrant to the ultimate purchaser and each subsequent purchaser that each such motor vehicle is designed— (1) to operate with gasoline containing up to and including 30 percent ethanol; and (2) to meet the design requirements under subsection (c). (c) Design requirements The manufacturer of a motor vehicle described in subsection (a) shall design each such motor vehicle— (1) to operate using gasoline that has a research octane number (as defined in section 101 of the Next Generation Fuels Act of 2020 (2) to improve fuel economy connected to the use of gasoline that has a research octane number (as defined in section 101 of the Next Generation Fuels Act of 2020 (d) Enforcement (1) Violations Any manufacturer who violates subsection (b) or (c) shall be subject to a civil penalty of not more than $25,000. Any such violation shall constitute a separate offense with respect to each motor vehicle. (2) Civil actions; administrative assessment of certain penalties The provisions of subsections (b) and (c) of section 205 shall apply with respect to a violation of subsection (b) or (c) of this section to the same extent and in the same manner as such provisions apply with respect to a violation of section 203(a)(3). (e) Consultation In promulgating regulations to carry out this section, the Administrator shall consult with persons to be regulated under this section. . (b) Regulations The Administrator of the Environmental Protection Agency shall— (1) not later than 24 months after the date of enactment of this Act, propose regulations to carry out the amendments made by this section; and (2) not later than 30 months after such date of enactment, finalize regulations to carry out the amendments made by this section. 302. Performance standards for new e30 infrastructure Section 9003 of the Solid Waste Disposal Act ( 42 U.S.C. 6991b (k) E30 retail dispenser systems (1) In general The Administrator shall, not later than 1 year prior to the effective date specified in paragraph (3), issue or revise, as necessary, performance standards for dispenser systems described in paragraph (2) to require that such dispenser systems be compatible with automotive fuel with a concentration of up to and including 30 percent ethanol by volume. (2) Dispenser systems This subsection applies with respect to dispenser systems that are— (A) on or after the effective date specified in paragraph (3), brought into use to dispense at retail automotive fuel from an underground storage tank; and (B) subject to regulation under sections 1910.106 and 1926.152 of title 29, Code of Federal Regulations (as in effect on the date of enactment of this subsection). (3) Effective date Standards issued or revised pursuant to paragraph (1) shall take effect on January 1, 2024. (4) Definitions In this subsection: (A) Automotive fuel The term automotive fuel 15 U.S.C. 2821(6) (B) Compatible The term compatible (C) Dispenser system The term dispenser system . 303. CAFE and GHG credit generation (a) In general Subsection (a) of section 32906 of title 49, United States Code, is amended— (1) by striking 1993 through 2019 1993 through 2035 (2) by striking the maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is the maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is 1.2 miles per gallon. (b) Conforming amendments Section 32905 of title 49, United States Code, is amended— (1) in subsection (b), by striking 2019, 2035, (2) in subsection (d), by striking 2019, 2035,

Summary: Next Generation Fuels Act of 2020 This bill establishes and revises requirements for transportation fuels, including to (1) require the Environmental Protection Agency to test and certify a low-carbon, high-octane fuel; (2) establish a minimum octane standard for gasoline; (3) limit the use of aromatic hydrocarbon content in gasoline; and (4) revise requirements regarding ethanol blends.