Fuel Choice and Deregulation Act of 2021

To provide regulatory relief to alternative fuel producers and consumers, and for other purposes. 1. Short title This Act may be cited as the Fuel Choice and Deregulation Act of 2021 2. Alternative fuels (a) Aftermarket conversions of motor vehicles to alternative fuel Section 203 of the Clean Air Act ( 42 U.S.C. 7522 (c) Older vehicles (1) In general The aftermarket conversion of a motor vehicle to alternative fuel operation shall not— (A) be considered tampering under this section if the aftermarket conversion system manufacturer or the person performing the conversion demonstrates that the development and engineering sophistication of the conversion technology is— (i) matched to an appropriate motor vehicle or group of motor vehicles; and (ii) well-designed and installed in accordance with good engineering judgment so that the aftermarket conversion system does not degrade emission performance, as compared to the performance of the motor vehicle or motor vehicles before the conversion; or (B) require the Administrator to issue a certificate of conformity. (2) Label The person performing a conversion described in paragraph (1) shall affix a label to the motor vehicle stating that— (A) the motor vehicle has been equipped with an aftermarket conversion system; and (B) the installation of that system occurred after the initial sale of the motor vehicle. (3) No preclusion of orders Nothing in this subsection precludes the Administrator from issuing an order to prohibit the manufacture, sale, distribution, or installation of an aftermarket conversion system if the Administrator has evidence that the installation of the aftermarket conversion system on a motor vehicle degrades emission performance. . (b) Biomass fuels Section 211 of the Clean Air Act ( 42 U.S.C. 7545 (w) Biomass fuels Notwithstanding any other provision of this Act, the Administrator may not prohibit or control biomass fuel (as defined in section 203 of the Biomass Energy and Alcohol Fuels Act of 1980 ( 42 U.S.C. 8802 . 3. Calculation of average fuel economy (a) Definitions Section 32901(a) of title 49, United States Code, is amended— (1) by redesignating paragraphs (7) through (19) as paragraphs (8), (9), (10), (13), (16), (17), (19), (20), (21), (22), (23), (24), and (26), respectively; (2) by inserting after paragraph (6) the following: (7) biodiesel (A) means liquid fuel derived from biomass that meets— (i) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act ( 42 U.S.C. 7545 (ii) the requirements of the American Society of Testing Materials Standard D6751; and (B) does not include any liquid with respect to which a credit may be determined under section 40 ; (3) by inserting after paragraph (10) (as so redesignated) the following: (11) E85 (A) contains between 51 and 83 percent ethanol; and (B) meets the specifications of the American Society of Testing Materials Standard D5798. (12) flexible fuel vehicle ; (4) by inserting after paragraph (13) (as so redesignated) the following: (14) fuel choice enabling manufacturer (15) fuel choice enabling vehicle (A) has been warranted to operate on natural gas, hydrogen, propane, or at least 20 percent biodiesel; (B) is a flexible fuel vehicle; (C) is a plug-in electric drive vehicle; (D) is propelled by a fuel cell that can produce power without the use of petroleum or a petroleum-based fuel; or (E) (i) is propelled by something other than an internal combustion engine; and (ii) is warranted to operate on something other than petroleum-based fuel. ; (5) by inserting after paragraph (17) (as so redesignated) the following: (18) M85 (A) contains up to 85 percent methanol; and (B) meets the specifications of the American Society of Testing Materials International Standard D5797. ; and (6) by inserting after paragraph (24) (as so redesignated) the following: (25) plug-in electric drive vehicle 42 U.S.C. 13258(a) . (b) Fuel choice enabling manufacturers (1) Compliance with the Clean Air Act Section 32902 of title 49, United States Code, is amended by adding at the end the following: (l) Deemed compliance with the Clean Air Act If a fuel choice enabling manufacturer is in compliance with all applicable standards prescribed under this section for model year 2020 or any subsequent model year, the automobiles manufactured by that manufacturer in that model year are deemed to be in compliance with all applicable greenhouse gas regulations established by the Environmental Protection Agency pursuant to section 202 of the Clean Air Act ( 42 U.S.C. 7521 . (2) Credits for exceeding standards Section 32903(a) of title 49, United States Code, is amended by striking paragraph (2) and inserting the following: (2) any of the 5 consecutive model years immediately after the model year for which the credits are earned, to the extent that those credits are not used under paragraph (1). . (3) Average fuel economy bonus for fuel choice enabling manufacturers Section 32904 of title 49, United States Code, is amended— (A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (B) by inserting after subsection (c) the following: (d) Average fuel economy bonus for fuel choice enabling manufacturers The average fuel economy of a fuel choice enabling manufacturer for a model year is the sum of— (1) the average fuel economy of the fuel choice enabling manufacturer for that model year, as otherwise calculated under this section; and (2) 8 miles per gallon. . (c) Effective date The amendments made by this section shall apply with respect to automobiles manufactured for model year 2022 or for any subsequent model year. 4. Ethanol waiver Section 211(h)(4) of the Clean Air Act ( 42 U.S.C. 7545(h)(4) (1) in the matter preceding subparagraph (A), by inserting or more of 10 percent (2) in subparagraph (C), by striking additional alcohol or

Summary: Fuel Choice and Deregulation Act of 2021 This bill revises requirements governing the use of alternative fuels in vehicles. Among other things, the bill revises requirements on aftermarket vehicle conversions that enable older vehicles to use alternative fuels. Under current law, the Environmental Protection Agency (EPA) must certify such conversions. This bill removes such certification requirements. The bill also bans the EPA from prohibiting or controlling biomass fuel. In addition, the bill revises the Corporate Average Fuel Economy standards for certain vehicles that are able to operate on something other than petroleum-based fuel, such as electric vehicles. Finally, the bill revises the Reid Vapor Pressure (RVP) requirements to provide for the year-round sale of ethanol-gasoline fuel blends that contain more than 10% denatured anhydrous ethanol. RVP is a metric of gasoline volatility (i.e., how quickly fuel evaporates into the atmosphere). Current law prohibits the sale of gasoline that exceed certain RVP limits during the high ozone season (i.e., the summer months). However, current law provides waivers from this requirement, including a waiver that gives certain ethanol-gasoline fuel blends containing 10% denatured anhydrous ethanol a higher RVP limit under certain conditions. This bill expands the waiver to include ethanol-gasoline fuel blends containing more than 10% of such ethanol, thus allowing year-round sales of such fuel blends.