‘‘(C) consists solely of carbon, hydrogen, oxy-
gen, and sulfur, excepting any impurities present at 
trace levels that are gaseous upon combustion.’’; and 
(3) in paragraph (4), by striking ‘‘or (3)’’. 
SEC. 8. CLEAN OCTANE STANDARD. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by— 
(1) in subsection (d)— 
(A) in paragraph (1), by striking ‘‘or (o)’’ 
each place it appears and inserting ‘‘(o), or 
(w)’’; and 
(B) in paragraph (2), by striking ‘‘and 
(o)’’ each place it appears and inserting ‘‘(o), 
and (w)’’; and 
(2) by adding at the end the following: 
‘‘(w) CLEAN OCTANE STANDARD.— 
‘‘(1) AROMATICS.— 
‘‘(A) ANNUAL AVERAGE LIMITATION.—Ef-
fective beginning on January 1, 2025, it shall 
be unlawful for refiners or importers to sell 
motor vehicle gasoline that contains, on an av-
erage annual basis, an aromatic hydrocarbon 
concentration in excess of 17.5 percent by vol-
ume. 
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‘‘(B) 2025 CAP.—Effective beginning on 
January 1, 2025, it shall be unlawful for refin-
ers or importers to sell motor vehicle gasoline 
that contains an aromatic hydrocarbon con-
centration in excess of 30 percent by volume. 
‘‘(C) 2030 CAP.—Effective beginning on 
January 1, 2030, it shall be unlawful for refin-
ers or importers to sell motor vehicle gasoline 
that contains an aromatic hydrocarbon content 
in excess of 25 percent by volume. 
‘‘(D) OXYGENATE ADJUSTMENT FOR GASO-
LINE BLENDSTOCK.—For purposes of compli-
ance with this paragraph, the aromatics volume 
of 
motor 
vehicle 
gasoline 
produced 
as 
blendstock for oxygenate blending may be ad-
justed based on the specified type and amount 
of oxygenate required to be added downstream. 
Any such adjustment shall be made through— 
‘‘(i) the preparation of a hand blend 
containing oxygenate; or 
‘‘(ii) any other method deemed accept-
able to the Administrator. 
‘‘(E) REGULATIONS.— 
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‘‘(i) IN GENERAL.—The Administrator 
shall promulgate regulations to implement 
this paragraph. 
‘‘(ii) CONTENTS.—Such regulations 
shall allow for the generation of tradeable 
credits to meet the requirement of sub-
paragraph (A), but any credits shall expire 
after not more than five years. 
‘‘(iii) 
INITIAL
REGULATIONS.—Not 
later than January 1, 2025, the Adminis-
trator shall promulgate final regulations 
under clause (i). 
‘‘(2) LOW-CARBON OCTANE.— 
‘‘(A) PROHIBITION.—Effective beginning 
on January 1, 2025, no refiner or importer 
shall introduce into commerce motor vehicle 
gasoline with a research octane number of 95 
or higher except through the use of a fuel addi-
tive that has average lifecycle greenhouse gas 
emissions that (as determined by the Secretary 
of Energy using the version of the Argonne Na-
tional Laboratory Greenhouse gases, Regulated 
Emissions, and Energy use in Transportation 
(GREET) model in effect as of the date of en-
actment of the Next Generation Fuels Act of 
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2021) are at least 40 percent less than baseline 
lifecycle greenhouse gas emissions. 
‘‘(B) REGULATIONS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall promulgate regulations to implement 
this paragraph. 
‘‘(ii) CONTENTS.—Such regulations 
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 require-
ments of this paragraph are met. 
‘‘(iii) 
INITIAL
REGULATIONS.—Not 
later than January 1, 2024, the Adminis-
trator shall promulgate final regulations 
under clause (i). 
‘‘(3) DEFINITIONS.— 
‘‘(A) BASELINE LIFECYCLE GREENHOUSE 
GAS
EMISSIONS.—The term ‘baseline lifecycle 
greenhouse gas emissions’ means the average 
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lifecycle greenhouse gas emissions, as deter-
mined by the Administrator, in consultation 
with the Director of the Argonne National Lab-
oratory, for unblended gasoline sold or distrib-
uted as transportation fuel in 2021. 
‘‘(B) LIFECYCLE GREENHOUSE GAS EMIS-
SIONS.—The term ‘lifecycle greenhouse gas 
emissions’ means the aggregate quantity of 
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 
on the date of enactment of the Next Genera-
tion Fuels Act of 2021. 
‘‘(C) RESEARCH
OCTANE
NUMBER.—The 
term ‘research octane number’ has the meaning 
given to such term in section 201 of the Petro-
leum Marketing Practices Act.’’. 
SEC. 9. NEW FUEL EFFECTS STUDY. 
(a) FUEL EFFECTS STUDY.—Subject to subsection 
(b), the Administrator of the Environmental Protection 
Agency shall carry out a study of the emissions effects 
of ethanol-blended fuels in light-duty vehicles and light- 
duty trucks, for the purpose of updating the Motor Vehicle 
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Emission Simulator modeling system. In designing and 
conducting such study, the Administrator shall— 
(1) select test fuels that— 
(A) reflect a range of ethanol concentra-
tions between 0 and at least 25 percent by vol-
ume; and 
(B) are representative of fuels that are 
widely available today or reasonably could be 
available regionally or nationally, taking into 
account fuel refinery operations and economics, 
including the cost of reformate; 
(2) select test vehicles that are representative of 
recent-model-year vehicles that include relevant tech-
nologies that are, or reasonably may come to be, in 
widespread use; 
(3) measure emission products of combustion 
including, at a minimum— 
(A) particulate matter of 2.5 micrometers 
in diameter or less; 
(B) ultrafine particulate matter of 0.1 mi-
crometers in diameter or less; 
(C) nitrogen oxides; 
(D) total hydrocarbons; 
(E) nonmethane organic gas; 
(F) carbon monoxide; 
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SEC. 10. DUAL-FUELED AUTOMOBILE DEFAULT UTILIZA-
TION FACTOR. 
(a) IN GENERAL.—Section 32905(b) of title 49, 
United States Code, is amended to read as follows: 
‘‘(b) DUEL FUELED AUTOMOBILES.—Except as pro-
vided in subsection (d) of this section or section 
32904(a)(2) of this title— 
‘‘(1) for any model of dual-fueled automobile 
manufactured by a manufacturer in model years 
1993 through 2019, the Administrator of the Envi-
ronmental Protection Agency shall measure the fuel 
economy for that model by dividing 1.0 by the sum 
of— 
‘‘(A) 0.5 divided by the fuel economy 
measured under section 32904(c) of this title 
when operating the model on gasoline or diesel 
fuel; and 
‘‘(B) 0.5 divided by the fuel economy— 
‘‘(i) measured under subsection (a) 
when operating the model on alternative 
fuel; or 
‘‘(ii) measured based on the fuel con-
tent of B20 when operating the model on 
B20, which is deemed to contain 0.15 gal-
lon of fuel; and 
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‘‘(2) for any model of dual-fueled automobile 
manufactured by a manufacturer in model year 
2023 or later, the Administrator shall measure the 
fuel economy for that model by dividing 1.0 by the 
sum of— 
‘‘(A) 0.79 divided by the fuel economy 
measured under section 32904(c) of this title 
when operating the model on gasoline or diesel 
fuel; and 
‘‘(B) 0.21 divided by the fuel economy 
measured under subsection (a) when operating 
the model on alternative fuel. 
A manufacturer may demonstrate that a higher uti-
lization factor applies to any model of dual-fueled 
automobile manufactured by such manufacturer in 
model year 2023 or later.’’. 
(b) EXCLUSION FROM LIMIT
ON MAXIMUM IN-
CREASE IN AVERAGE FUEL ECONOMY ATTRIBUTABLE TO 
DUAL-FUELED AUTOMOBILES.—Section 32906 of title 
49, United States Code, is amended by adding at the end 
the following: 
‘‘(c) EXCLUSION.—Subsection (a) shall not apply to 
the fuel economy of dual-fueled automobiles measured 
under section 32905(b)(2).’’. 
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(c) TESTING PROCEDURES.—Section 206(h) of the 
Clean Air Act (42 U.S.C. 7525(h)) is amended by adding 
at the end the following: ‘‘Not later than July 1, 2022, 
the Administrator shall amend the test procedures under 
this section in accordance with section 32905(b)(2) of title 
49, United States Code.’’. 
SEC. 11. TRANSFERS OF CREDITS FOR EXCEEDING AVER-
AGE FUEL ECONOMY STANDARDS. 
Section 32903(g)(3) of title 49, United States Code, 
is amended to read as follows: 
‘‘(3) MAXIMUM INCREASE.—The maximum in-
crease in any compliance category attributable to 
transferred credits is— 
‘‘(A) for model year 2021, 4.0 miles per 
gallon; and 
‘‘(B) for model year 2022 and subsequent 
model years, 6.0 miles per gallon.’’. 
SEC. 12. EXTENSION AND EXPANSION OF ALTERNATIVE 
FUEL VEHICLE REFUELING PROPERTY CRED-
IT. 
(a) IN GENERAL.—Section 30C of the Internal Rev-
enue Code of 1986 is amended— 
(1) by amending subsection (c) to read as fol-
lows: 
‘‘(c) DEFINITIONS.—For purposes of this section— 
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‘‘(1) QUALIFIED ALTERNATIVE FUEL VEHICLE 
REFUELING PROPERTY.—The term ‘qualified alter-
native fuel vehicle refueling property’ means any 
property (not including a building and its structural 
components) if— 
‘‘(A) such property is of a character sub-
ject to the allowance for depreciation, 
‘‘(B) the original use of such property be-
gins with the taxpayer, and is not used as the 
principal residence (within the meaning of sec-
tion 121) of the taxpayer, and 
‘‘(C) such property is used— 
‘‘(i) for the storage or dispensing of a 
qualifying fuel into the fuel tank of a 
motor vehicle propelled by such fuel, but 
only if the storage or dispensing of the fuel 
is at the point where such fuel is delivered 
into the fuel tank of the motor vehicle, or 
‘‘(ii) for the recharging of motor vehi-
cles propelled by electricity, but only if 
such property is located at the point where 
the motor vehicles are recharged. 
‘‘(2) QUALIFYING FUEL.—The term ‘qualifying 
fuel’ means— 
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‘‘(A) any fuel at least 50 percent of the 
volume of which consists of natural gas, com-
pressed natural gas, liquified natural gas, lique-
fied petroleum gas, or hydrogen, or 
‘‘(B) any fuel mixture at least 20 percent 
of the volume of which consists of ethanol or 
biodiesel, without regard to any denaturant or 
kerosene used in such mixture.’’; and 
(2) in subsection (g), by striking ‘‘December 
31, 2021’’ and inserting ‘‘December 31, 2027’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
Æ 
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