lations, the applicable percentage referred 
to in paragraph (3), on a volume percentage 
of gasoline basis, shall be 3.2 in 2006. 
‘‘(B) APPLICABLE VOLUME.— 
‘‘(i) CALENDAR YEARS 2006 THROUGH 
2012.—For the purpose of subparagraph 
(A), the applicable volume for any of cal-
endar years 2006 through 2012 shall be 
determined in accordance with the fol-
lowing table: 
‘‘Applicable volume of renewable fuel 
Calendar year: 
(In billions of gallons) 
2006 .....................................................................................
4.0
2007 .....................................................................................
4.7
2008 .....................................................................................
5.4
2009 .....................................................................................
6.1
2010 .....................................................................................
6.8
2011 .....................................................................................
7.4
2012 .....................................................................................
8.0
‘‘(ii) CALENDAR
YEARS
2013
AND 
THEREAFTER.—For the purpose of sub-
paragraph (A), the applicable volume for 
calendar year 2013 and each calendar year 
thereafter shall be determined by the Ad-
ministrator, in coordination with the Sec-
retary of Energy and the Secretary of Ag-
riculture, based on a review of the imple-
mentation of the program during calendar
years 2006 through 2012, including a re-
view of— 
‘‘(I) the impact of the use of re-
newable fuels on the environment, air 
quality, energy security, job creation, 
and rural economic development; and 
‘‘(II) the expected annual rate of 
future production of renewable fuels, 
including cellulosic ethanol. 
‘‘(iii) LIMITATION.—An increase in 
the applicable volume for a calendar year 
under clause (ii) shall be not less than the 
product obtained by multiplying— 
‘‘(I) the number of gallons of 
gasoline that the Administrator esti-
mates will be sold or introduced into 
commerce during the calendar year; 
and 
‘‘(II) the quotient obtained by di-
viding— 
‘‘(aa) 8,000,000,000; by 
‘‘(bb) the number of gallons 
of gasoline sold or introduced 
into commerce during calendar 
year 2012.
‘‘(3) APPLICABLE PERCENTAGES.— 
‘‘(A) PROVISION
OF
ESTIMATE
OF
VOL-
UMES OF GASOLINE SALES.—Not later than Oc-
tober 31 of each of calendar years 2006 
through 2011, the Administrator of the Energy 
Information Administration shall provide to the 
Administrator of the Environmental Protection 
Agency an estimate of the volumes of gasoline 
that will be sold or introduced into commerce in 
the United States during the following calendar 
year. 
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.— 
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of calendar years 
2006 through 2011, based on the estimate 
provided under subparagraph (A), the Ad-
ministrator shall determine and publish in 
the Federal Register, with respect to the 
following calendar year, the renewable fuel 
obligation that ensures that the require-
ments under paragraph (2) are met. 
‘‘(ii) REQUIRED ELEMENTS.—The re-
newable fuel obligation determined for a 
calendar year under clause (i) shall—
‘‘(I) be applicable to refiners, 
blenders, and importers, as appro-
priate; 
‘‘(II) be expressed in terms of a 
volume percentage of gasoline sold or 
introduced into commerce; and 
‘‘(III) subject to subparagraph 
(C)(i), consist of a single applicable 
percentage that applies to all cat-
egories of persons specified in sub-
clause (I). 
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
Administrator shall make adjustments— 
‘‘(i) to prevent the imposition of re-
dundant obligations to any person specified 
in subparagraph (B)(ii)(I); and 
‘‘(ii) to account for the use of renew-
able fuel during the previous calendar year 
by small refineries that are exempt under 
paragraph (11). 
‘‘(4) EQUIVALENCY.—For the purpose of para-
graph (2), 1 gallon of either cellulosic biomass eth-
anol or waste derived ethanol shall be considered to 
be the equivalent of 2.5 gallons of renewable fuel.
‘‘(5) CREDIT PROGRAM.— 
‘‘(A) REGULATIONS.—The regulations pro-
mulgated to carry out this subsection shall pro-
vide for— 
‘‘(i) the generation of an appropriate 
amount of credits by any person that re-
fines, blends, or imports gasoline that con-
tains a quantity of renewable fuel that is 
greater than the quantity required under 
paragraph (2); 
‘‘(ii) the generation of an appropriate 
amount of credits for biodiesel fuel; and 
‘‘(iii) if a small refinery notifies the 
Administrator that the small refinery 
waives the exemption provided by this sub-
section, the generation of credits by the 
small refinery beginning in the year fol-
lowing the notification. 
‘‘(B) USE
OF
CREDITS.—A person that 
generates credits under subparagraph (A) may 
use the credits, or transfer all or a portion of 
the credits to another person, for the purpose 
of complying with paragraph (2). 
‘‘(C) LIFE
OF
CREDITS.—A credit gen-
erated under this paragraph shall be valid to